House price growth remains limited despite higher levels of market activity, with average values rising by 1.3% in the 12 months to January, down from 1.8% a year earlier.

Northern Ireland continues to record the fastest annual growth at 8%. Within Great Britain, the North West is the strongest-performing region, with prices up 3.3% year on year. Scotland follows at 2.8%, with the North East at 2.5%. In contrast, average prices in London are 0.2% lower than a year ago.

Higher growth rates are concentrated in more affordable areas where the number of homes available for sale has declined compared with last year, reducing supply and supporting prices. Elsewhere, growth is flat or weaker than a year ago.

Southern England remains the weakest regional market, with average prices broadly unchanged over the past 12 months. However, conditions have improved compared with the more widespread declines recorded in the second half of 2025.

Improved confidence and continued demand to move mean February is on course to record the highest number of new listings for the month in the past 10 years.

There are currently 6% more homes on the market than a year ago, and this figure is expected to increase in the coming months. A rise in supply should provide buyers with greater choice and is likely to limit further price growth over the rest of the year.

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.”

Average mortgage rates for new loans are at their lowest level for 4 years. This is thanks to lower base rates and stronger competition between lenders. In real terms, this means that 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.

Mortgage lenders have eased affordability criteria over the past year. Currently, they are generally assessing borrowers against a 6.5% mortgage rate, compared with 8.5% a year ago. Based on this, 40% of homes listed on Zoopla can be bought with a mortgage at a lower cost than local rents, assuming a 20% deposit, up from 25% last year.

In certain regions, including the North East, North West, and Scotland, more than half of homes for sale are cheaper to rent than to buy at the 6.5% mortgage stress rate.

Donnell continued: “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.”