Housing markets in Scotland and northern England are predicted to see the strongest house price growth in 2026, according to recent analysis by Zoopla. Meanwhile, more expensive areas in southern England are continuing to adjust to higher mortgage rates and increased property taxes.
Overall, Zoopla expects UK house prices to rise by around 1.5% next year, though growth is likely to vary significantly between regions due to differences in affordability, demand, and housing supply.
Scottish locations dominate the top of the list, with nine of the ten highest-ranking areas north of the border. Motherwell takes the lead, followed by Glasgow, Paisley, Falkirk, and Kirkcaldy. Wigan, in north-west England, is the only English area to feature in the top ten.
These markets typically have limited unsold stock, faster sales, and fewer reductions in asking prices, which supports stronger price growth. Falkirk and Kirkcaldy, for example, saw annual house price growth of 4.2%, above the Scottish average of 2.8%.
In England, Wigan is tipped for the highest growth, followed by Liverpool and Stoke-on-Trent. Northern and Midlands towns dominate the top end of the English rankings, with relatively affordable house prices, proximity to employment hubs, and a shortage of homes for sale cited as key factors driving growth.
By contrast, southern England and London appear at the bottom of the rankings. Many southern markets are experiencing modest single-digit falls in house prices due to higher supply, affordability challenges, and the impact of increased stamp duty since April 2025.
Although housing activity in the south is expected to pick up slightly in 2026, Zoopla forecasts that price growth in these areas will generally range between 0% and 1%.
Several London postal areas, including West Central, West, and East Central London, were among the lowest-ranked. These areas have average house prices above £700,000 and longer selling times compared with the UK average.
Richard Donnell, Zoopla’s executive director, highlighted the importance of local market conditions. He said that while Scotland and northern England have the strongest prospects, there are opportunities elsewhere in the UK where demand and affordability are well balanced.
London’s outlook has improved compared with previous years, following a decade of below-average growth, which could create chances for buyers looking for value.
In Wales, Cardiff and Newport were identified as having strong potential for house price growth in 2026. Meanwhile, Northern Ireland saw the highest price rises over the past year, up 6.5%, although it ranks 25th overall for growth prospects as prices rebound from a low base.
Zoopla assessed each area by considering affordability, average selling times, the scale of price reductions, and the proportion of homes on the market for more than six months.
These factors were evaluated across 120 UK postal areas to identify locations with the strongest growth potential. Zoopla notes that last year’s rankings closely matched actual house price inflation in 2025, making the analysis a reliable guide for the year ahead.
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