By Johan Zainal Abidin
Managing Director, UK Homes
27 February 2026
Recent data indicates that the UK housing market has begun 2026 with a noticeable increase in activity. According to the Zoopla House Price Index (February 2026), the number of homes listed for sale is approximately 6% higher than at the same time last year, marking the strongest February for new listings in ten years.
This increase in supply coincides with improved mortgage affordability. Average mortgage rates have fallen to their lowest levels in more than four years, easing borrowing costs and supporting renewed buyer confidence.
Annual house price growth remains modest. Zoopla reports UK-wide price inflation of approximately 1.3%, reflecting a market that appears to be stabilising rather than accelerating. Regional variation persists, with stronger growth recorded in parts of the North and Scotland, while London prices remain comparatively subdued.
One notable shift is the relative cost comparison between buying and renting. Zoopla estimates that around 40% of homes currently listed for sale are cheaper to purchase with a mortgage than to rent locally, assuming a typical deposit. While affordability varies significantly by region and buyer profile, this development may support gradual improvement in transaction levels.
The rise in listings also signals a more competitive environment for sellers. Greater supply increases buyer choice, placing emphasis on accurate pricing and presentation. In London, where buyer scrutiny is typically higher and demand more selective, we are observing longer decision timelines and greater sensitivity to pricing strategy. Well-positioned properties continue to transact, but overpricing is corrected more quickly in a market with expanding choice.
Although activity has improved compared with late 2025, transaction volumes remain below the elevated levels seen ahead of previous tax deadlines. The current recovery appears measured rather than rapid, suggesting a market adjusting to more stable financing conditions rather than entering a renewed surge.
For buyers and sellers alike, the interaction between mortgage rates, housing supply and pricing discipline will continue to shape conditions through 2026.
Source: Zoopla House Price Index, February 2026.