Homebuyer demand in England declined marginally in the first quarter of 2026, with new fresh pointing to a growing regional divide in market activity.
According to the latest sales demand index from eXp UK, demand fell by 1.6% compared with the previous quarter, taking the national level to 42.4%. This is also 1% lower than the corresponding period last year.
The figures suggest a split between north and south. Counties in the Midlands and north of England recorded modest growth in buyer demand, while many southern areas saw sharper declines.
The analysis is based on the proportion of homes listed for sale that have already secured a buyer, comparing current conditions with both the previous quarter and a year earlier.
Derbyshire recorded the strongest quarterly increase, with demand rising by 0.9% to 45.2%. Smaller gains were also seen in Lincolnshire and Durham (both +0.7%), followed by Staffordshire (+0.6%) and Shropshire (+0.5%).
In contrast, some of the steepest quarterly falls were concentrated in the south. Demand dropped by 4.6% in the Bristol, 4.5% in London and 4.1% in Surrey, with Wiltshire and Hertfordshire also seeing declines of nearly 4%.
Over the past year, Rutland recorded the largest increase in demand, up 5.8%, followed by gains in Merseyside, the East Riding of Yorkshire, Derbyshire and Lancashire. At the other end of the market, the City of London saw the sharpest annual fall (-6.9%), alongside declines in Cambridgeshire, Bedfordshire, Greater London and Berkshire.
Despite the recent quarterly drop, the highest levels of buyer demand are currently found in Bristol (56.4%), Tyne and Wear (53.2%) and South Yorkshire (52.3%), with Greater Manchester and Merseyside both at 49.1%.
Demand remains weakest in London, where just 14% of listings have secured a buyer, followed by the Isle of Wight (28.4%) and Cornwall (32%).
The head of eXp UK and Europe, Adam Day, commented: “The latest figures highlight an increasingly clear regional divide across England’s housing market. While many southern counties are continuing to face subdued demand as a result of higher price bases, stretched affordability, and greater sensitivity to interest rate movements, markets in the Midlands and the North are proving notably more resilient.
“In these regions, comparatively lower property values mean buyers are less exposed to borrowing cost pressures, helping to sustain transaction levels. In addition, stronger rental yields and ongoing investment and regeneration in key urban centres are supporting both owner-occupier and investor demand. There is also evidence that shifting working patterns and greater flexibility around location are continuing to redistribute housing demand away from traditionally dominant southern markets.
“Taken together, this suggests the current market is not experiencing a uniform slowdown, but rather a rebalancing, where relative affordability, local economic conditions, and changing buyer priorities are playing a more decisive role than at any point in recent years.”
