The Housing Market Rebounds: What You Need to Know

The latest report from Zoopla presents an upbeat outlook for the UK housing market as it enters 2026. With improving confidence and falling mortgage rates, buyers are returning, invigorating the landscape for home sales.

Revival of Buyer Demand

After a quiet end to 2025, buyer demand has rebounded significantly since the start of the year. Homeowners who postponed their moving decisions amid budget uncertainties are now returning to the market. Although current activity levels align more closely with early 2024, they still trail behind the remarkable surge witnessed at the beginning of last year, when the rush to finalize purchases ahead of stamp duty changes was in full swing.

Increased Housing Supply and Its Effects

One of the noteworthy developments is the increase in the total number of homes available for sale, which rose by 6% compared to last year. This is the largest inventory seen in eight years, offering potential buyers greater choice and reshaping market dynamics. As competition eases among buyers, sellers are encouraged to focus on realistic pricing and presenting their homes attractively to stand out in the evolving market.

Steady Growth in Average House Prices

Despite the changes in market conditions, the average UK house price has increased by 1.2% over the last year, reaching £269,800. Notably, this increase has been especially pronounced in more affordable areas of the Midlands and northern England, where prices have surged at a rate four times faster than the national average.

Expert Insights on the Future

Richard Donnell, executive director at Zoopla, highlights the returning confidence among home buyers as a crucial factor, particularly as mortgage rates decline. With more homes available, the desire to move remains robust. Sellers, however, must be aware of the competitive nature of the current market and adapt accordingly. Well-priced homes with appealing presentations are anticipated to attract strong buyer interest in the coming months.

This positive momentum in the housing market suggests that buyers and sellers can find opportunities for successful transactions, making 2026 a year of potential for many looking to navigate the property landscape.