Reflecting improved confidence and a strong desire to move, February is on track to record the highest number of new home listings in a decade, according to Zoopla’s latest House Price Index.
Currently, there are 6% more homes for sale than a year ago - something Zoopla expects to rise further in the coming months. Not only will this increase choice for buyers but it will help to keep prices increases in check over the remainder of the year.
Combined with falling mortgage rates, the market is currently looking particularly good for first-time buyers, with 40% of homes for sale now cheaper to buy with a mortgage than rent.
Mortgage rates putting homes within reach
Average mortgage rates for new loans are at their lowest level for four years. Rates on both two-year and five-year fixed deals are now below 4% for the first time since 2022.
As such, buyers currently have access to some of the best deals seen for several years, particularly those with larger deposits, and this is supporting increased sales activity.
40% of homes currently for sale on Zoopla are now cheaper to buy with a mortgage than the cost of renting locally, assuming a 20% deposit, up from 25% last year.
In some regions - the North East, North West and Scotland - over half of homes for sale are cheaper to rent than buying at a 6.5% mortgage ‘stress rate’.
House price growth remains in check
Despite the increase in market activity, house price growth remains subdued at 1.3% in the 12 months to January, versus 1.8% the previous year.
Northern Ireland is registering the fastest rate of price growth at 8% and across Great Britain, the North West is the strongest-performing region, with prices up 3.3% year-on-year, followed by Scotland (2.8%) and the North East (2.5%). In contrast, average prices in London are 0.2% lower than a year ago.
The areas with higher price growth are more affordable and have fewer homes for sale than a year ago, limiting buyer choice and supporting price growth. Across the rest of the country, price growth is the same or weaker than a year ago.
Southern England remains the softest market, with average prices broadly unchanged over the last 12 months. However, this marks an improvement on the more widespread price falls seen in the second half of 2025.
Richard Donnell, executive director at Zoopla, said: “Despite improved levels of market activity, subdued house price inflation is good news for buyers and sellers and represents a more stable market. More sellers putting their home on the market shows a strong desire to move home.
"Lower mortgage rates and improved affordability of mortgages means now could very well be the best time to buy a home in recent years, especially for first-time buyers with more homes available to buy for less than the cost of renting.
“We expect continued modest rates of price inflation over 2026 which will support healthy levels of sales with some wide variations across local markets. Sellers need to seek the advice of local agents to get the right strategy for their home.”
