Is the UK Housing Market on the Mend? Positive Trends Emerge for Homebuyers
The latest report from Zoopla has shed light on an encouraging shift in the UK housing market as we step into 2026. After a sluggish end to 2025, optimism is beginning to seep back into the market, with buyers returning and mortgage rates declining. This combination is reshaping the housing landscape, offering more choices to prospective homebuyers.
Buyer Confidence Returns Amidst Falling Mortgage Rates
Following a quieter period at the end of last year, buyer demand has seen a robust rebound since the beginning of January. The current activity levels now closely mirror those noted at the start of 2024, showing that buyers are regaining their confidence even though they remain 9% below the exceptional levels of the previous year.
According to Zoopla, fierce competition among mortgage lenders is further bolstering this renewed confidence. As a result, a greater number of properties are now available on the market—6% more than last year—providing buyers with a wider array of options than seen in the last eight years.
Positive Price Increases Across Various Regions
Interestingly, the average UK house price saw an uplift of 1.2% over the past year, amounting to an increase of £3,200, and standing at £269,800 by the end of 2025. Areas across the Midlands, Northern England, Scotland, and Northern Ireland have experienced price rises substantially higher than other regions, indicating a trend towards affordability and accessibility for homebuyers in these areas.
In contrast, the South-East and South-West regions have experienced minor price declines, suggesting that buyers in these areas are becoming more price-sensitive due to increased costs and a greater supply of homes.
Market Conditions Favor Buyers
The increase in the number of homes for sale is not just a statistic; it represents a shift towards a buyers' market—a scenario where buyers hold greater leverage in making purchasing decisions. As properties become more abundant, sellers must focus on competitive pricing and the presentation of their homes to stand out in a more demanding market.
The overall outlook remains positive, as Zoopla anticipates that the current trends will continue into early 2026. Well-priced homes are expected to attract good demand, indicating a strong desire among buyers to find their new homes.
Richard Donnell, Executive Director at Zoopla, emphasized the significance of the market's evolution, stating that while the initial weeks of the year have seen demand fall short of the previous year’s remarkable performance, the increased choice available for buyers is indeed welcome news.
