Residential property prices have risen by 1.3% over the past 12 months, alongside an increase in both buyer and seller activity, according to the latest data from Zoopla.
Performance varies across the UK. In London, prices are down 0.2% year on year, while the North West has recorded growth of 3.3%. Northern Ireland has seen the strongest annual increase, with prices rising by 8%.
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.
House price growth remains in check – Property Industry Eye
Industry reactions:
Simon Gerrard, chairman, Martyn Gerrard Estate Agents: “These figures match what we’re seeing on the ground. The market is happier and more confident and that’s translating into increased activity.
“Increased seller confidence may have brought more houses to market, but the real cause in the rise in supply is from landlords selling up ahead of the Renters Rights Bill coming into effect in May. Normally, sellers are also buyers but not when landlords sell, which is why we’re seeing an unusually high level of supply at the moment. This is likely to continue to be the case for the next few months as landlords continue to exit the market.
“Lots of these properties are ideal for first time buyers who are enjoying the best market conditions in many years. First time buyers made up over half of our transactions in January as people are making the most of this window of opportunity to get on the ladder.
“Government focuses have been elsewhere and the choice to not have a major fiscal event in the spring is supporting continued confidence. If the government can continue to leave things untouched, then we could see a booming market this year.”
Tom Bill, head of UK residential research at Knight Frank, said: “House prices are being kept in check by rising supply as plans delayed by last year’s Budget are activated and more landlords attempt to sell due to red tape. Buyers are more circumspect than sellers but further mortgage rate declines and increasingly realistic asking prices will support transactions this spring. The political noise hasn’t cut through to the mainstream housing market yet but we expect plans will be put on hold when the starting gun is fired on the Labour leadership race.”
Nathan Emerson, CEO of Propertymark: “It is encouraging to see renewed confidence in the housing market, with more competitive mortgage rates and improved affordability checks helping more people step onto or move up the housing ladder. After years of cost-of-living pressures and higher interest rates, 2026 is showing signs of greater stability. With inflation dipping down earlier this month, it is hoped the Bank of England may have the confidence to bring the base rate down further when they next meet.
“At the same time, stronger price growth in parts of the UK outside London reflects changing working patterns and affordability considerations, as more people reassess where they can achieve a good standard of living.
“However, rising house prices are not sustainable without a significant boost to the supply of genuinely affordable homes. Meeting housing delivery targets will be crucial to ensuring long-term affordability and preventing buyers from being priced out of areas seen as more attainable.”
Nigel Bishop, founder of buying agency Recoco Property Search: “Not only has there been an uplift in buyer activity since the beginning of the year, we have also seen more sellers putting their home on the market. This is creating a highly favourable environment for house hunters with parts of the UK now boasting a more varied selection of properties to choose from. Whilst prices have seen a subtle increase, the uplift in homes for sale will allow more buyers to hold the upper hand during price negotiations.”
Sarah Cartlidge, Branch Manager at Fraser Reeves: “We’re seeing multiple factors coming together, including improving mortgage rates and easing lending criteria to make a more healthy and confident sales market recently. There are plenty of new properties being listed since January and this continues to be the case as we move into Spring.”
Enzo Mora, CEO and founder of The Mortgage Brain: “There’s a flurry of good news for home buyers on the horizon with mortgage interest rates at their lowest since before Liz Truss’s disastrous mini budget in 2022, greatly improved affordability and stress testing from lenders and subdued house price growth. We have seen a sharp rise in renters reassessing their ability to buy their first homes as mortgages become cheaper than renting in many parts of the UK.
“We need to get the message out that now is an excellent time to take advantage of opportunities in the property market wherever buyers are on the ladder. As inflation edges towards the government’s 2% target, industry is hopefully that we will see the first bank rate cut of 2026, which will add even more to confidence levels.”