After a period of uncertainty towards the end of 2025, the UK housing market has entered 2026 with renewed confidence. For buyers and sellers alike, this is encouraging news, and it could signal a more stable and active property market throughout the year.
Recent data and insights from Zoopla highlight several positive trends, including improved buyer confidence, lower mortgage rates, and steady house price growth. For anyone considering a move in 2026, understanding these changes can help you make informed decisions.
Confidence to Move Has Returned
Following uncertainty linked to the Autumn Budget in late 2025, confidence has started to return to the property market. Buyer demand is now tracking broadly in line with 2024 levels, suggesting that many people who delayed moving decisions are now re-entering the market.
Zoopla reports that housing market confidence has been steadily improving, supporting a recovery in sales activity across the UK. In fact, housing sales reached around 1.2 million in 2025, the highest level seen in three years, demonstrating strong underlying demand.
This renewed confidence is important for both buyers and sellers. Buyers are more willing to commit to purchases, while sellers benefit from a more active market with realistic opportunities to achieve competitive prices.
Mortgage Rates Are Providing a Boost
One of the biggest drivers behind renewed activity is mortgage affordability. Average mortgage rates have fallen to their lowest levels since 2022, helping improve affordability and encouraging buyers back into the market.
Zoopla notes that improving mortgage affordability, alongside stable incomes, has been a key factor supporting housing transactions and overall market stability.
Lower mortgage rates can significantly change buying power. For buyers, this can mean:
- Lower monthly repayments
- Greater borrowing potential
- More flexibility in property choice
For sellers, improved affordability means a larger pool of potential buyers, helping properties attract stronger interest levels.
House Prices Continue to Show Stable Growth
While the market is not experiencing rapid price inflation, steady growth is often a sign of a healthy, sustainable property market.
Recent data shows UK house prices have increased modestly year-on-year, with price inflation sitting around the 1–1.5% mark depending on timeframe and region.
This aligns closely with current market commentary suggesting house prices have risen around 1.2% year-on-year, although regional performance varies significantly — with some areas seeing small declines and others achieving stronger growth.
Zoopla forecasts suggest UK house prices are expected to increase by around 1.5% through 2026, reinforcing expectations of steady, manageable growth rather than volatility.
For buyers, this means prices are not rising too quickly. For sellers, it means property values remain resilient and supported by demand.
More Supply Means More Choice for Buyers
Another major shift is increased housing supply. More homes on the market gives buyers greater choice, but it also changes how properties are priced and marketed.
Higher supply levels help:
- Reduce bidding wars
- Stabilise pricing
- Give buyers more negotiating power
However, for sellers, this makes correct pricing more important than ever. Properties priced realistically are far more likely to attract strong interest and achieve successful sales.
Zoopla highlights that affordability constraints and increased supply are helping keep price inflation in check, which ultimately supports long-term market stability.
What This Means If You’re Thinking of Buying/Selling in 2026
If you are considering selling, the current market presents a strong opportunity, but preparation is key.
With more homes available to buyers, sellers should focus on accurate property valuations and realistic pricing strategies. For buyers, 2026 could mark the start of a positive shift, as banks like Nationwide are allowing buyers to borrow higher amounts.
If you’re considering buying or selling property this year, understanding market conditions is essential. With confidence returning, mortgage rates improving, and supply levels increasing, 2026 could present strong opportunities for well-prepared buyers and sellers.
The key is having the right guidance, accurate valuations, and a clear understanding of local market conditions.
