Zoopla’s latest House Price Index shows the housing market is on track for its busiest year since 2022, with 9% more homes expected to change hands in 2025. But buyers should not expect big price hikes – house prices are are up just 1.1% year-on-year, and down from 1.9% in 2024.
The property portal expects average UK house prices to increase by 1.5% over 2026, with the north-south divide in growth to remain.
Housing sales are expected to be 2% lower in 2026 at 1.18m.
More homes selling, but prices barely budge – Property Industry Eye
Industry reactions:
Nathan Emerson, CEO of Propertymark: “We continue to see a housing market that is responding positively despite economic turbulence. Now that we have seen a further reduction in base rates down to 3.75%, this will hopefully spur first-time buyers to continue to drive the highest level of home moves as lower borrowing costs are easing monthly repayment pressures and improving affordability, particularly for those entering the market for the first time.
“The falls in rates have helped release some of the pent-up demand that built up towards the end of this year, supporting transaction levels as we move into 2026. However, while activity is picking up, data shows that house price growth remains modest. With a good supply of homes available and affordability still a key constraint, especially in higher-priced areas, price rises are likely to remain measured rather than accelerate rapidly.”
James Nightingall, founder of HomeFinder AI: “First-time buyers have been the one demographic that has shown a similar level of motivation to last year. That being said, and although current mortgage rates may be favourable, some first-time buyers still struggle to save up a sufficient deposit to get on the property ladder. On a positive note, we are seeing an increasing number of developers who offer incentives or lower their asking price which has allowed more first-time buyers to make the step towards homeownership this year.”
Adam Feather, managing direct, Robert Anthony Estate Agents: “The majority of house hunters paused their search in the run-up to the Autumn Budget, leading to fewer transactions and prompting some sellers to reduce their asking prices to attract offers. First-time buyers, however, have remained active, with many looking to take advantage of falling mortgage borrowing rates.”
Polly Ogden Duffy, managing director, John D Wood & Co: “First-time buyers drive every part of the property market. When they kick-start activity at the entry level, it creates momentum throughout the entire system, allowing chains to form and transactions to progress across the country.
“With a continued shortage of rental homes pushing rents to record highs, buying is increasingly the more affordable option for many households – provided they can pass affordability checks and secure a mortgage. That’s why the recent easing of affordability criteria is such a positive step.
“In many cases, buyers can comfortably manage monthly repayments but have historically struggled to access lending. Greater flexibility from lenders is beginning to change that, helping more people make the leap onto the property ladder. Supporting first time buyers in this way is critical to maintaining healthy levels of market activity into 2026.”