The UK housing market has begun 2026 with renewed momentum, as a growing number of homeowners put their properties up for sale and borrowing costs continue to ease. New figures from property website Zoopla suggest that February is on course to record the highest number of newly listed homes for this month in the past ten years.
Over the four weeks to mid-February, the number of properties coming onto the market was around six per cent higher than during the same period last year. This surge in supply is creating more choice for buyers and is helping to keep house price growth under control.
Combined with falling mortgage rates and more flexible lending rules, conditions are becoming increasingly favourable for first-time buyers, who have faced years of limited options and affordability challenges.
More Homes on the Market Means Greater Choice for Buyers
The rise in new listings is being driven by growing confidence among sellers. Many households who delayed moving last year due to uncertainty around inflation, interest rates and the autumn Budget are now returning to the market.
Industry data also points to a noticeable improvement in overall activity. Sales agreed have risen sharply compared with recent months, even though buyer numbers remain slightly lower than this time last year. Despite this, February is shaping up to be one of the strongest months for transactions in the past decade.
According to Zoopla, the increase in supply should prevent sharp price rises during 2026 and create a more balanced market between buyers and sellers.
Buying Is Becoming Cheaper Than Renting in Many Areas
One of the most striking findings is that around 40 per cent of homes currently listed on Zoopla are now cheaper to buy with a mortgage than to rent locally, assuming buyers can put down a 20 per cent deposit. This marks a major improvement from last year, when only 25 per cent of homes fell into this category.
Lower mortgage rates and eased affordability checks from lenders are making ownership more achievable for many households. Several banks have adjusted their lending criteria, allowing some borrowers to take out larger loans than before.
Separate figures from Moneyfacts show that first-time buyers now have access to the widest range of low-deposit mortgage products in nearly two decades, highlighting a clear shift in market conditions.
Regional Price Differences Remain Significant
House price growth continues to vary widely across the UK. Zoopla reports that average prices rose by 1.3 per cent in the year to January, but the picture differs sharply by region.
Northern Ireland recorded the strongest annual growth at eight per cent. The North West followed with a rise of 3.3 per cent, while Scotland and the North East also saw solid increases. Wales experienced annual growth of just over two per cent.
In contrast, London saw prices dip slightly by 0.2 per cent, reflecting stretched affordability and a higher volume of homes for sale. The South East and South West also showed very modest or flat growth.
More affordable regions with fewer available properties are seeing faster price increases, while southern England remains more price-sensitive due to higher living costs and greater supply.
London Deposits Remain a Major Barrier
Despite improving conditions, challenges remain for buyers in the capital. The average first-time buyer deposit in London is now around £134,000 on a typical purchase price of £486,000, based on figures from Zoopla and the Office for National Statistics.
Loan-to-value ratios in London sit lower than the national average, meaning buyers must still save much larger deposits compared with other parts of the UK. This continues to make home ownership difficult for many young people without family support.
Experts See Opportunities for First-Time Buyers
Richard Donnell, executive director at Zoopla, said the current combination of rising supply and stable prices is creating a healthier and more predictable market.
He noted that lower mortgage rates and better affordability mean this could be one of the most promising periods in recent years for first-time buyers, especially as more properties are becoming cheaper to purchase than to rent.
Donnell added that modest price growth is expected to continue throughout 2026, with large variations depending on local conditions. He advised sellers to seek guidance from local agents to price homes realistically in order to achieve timely sales.
Negotiating Power Shifts Towards Buyers
David Fell, lead analyst at property firm Hamptons, explained that first-time buyers are becoming increasingly attractive to sellers because they do not need to sell another property first.
This advantage has allowed many to negotiate harder on price. In February, around one in five first-time buyers secured discounts of at least ten per cent off the asking price.
Nigel Bishop of Recoco Property Search echoed this view, saying that the growth in listings is giving buyers greater leverage during negotiations, even as prices edge slightly higher.
Landlords Selling Adds to Supply
Tom Bill, head of UK residential research at Knight Frank, said that higher supply is helping to keep prices in check. He pointed to landlords selling properties due to regulatory pressures and delayed decisions from last year’s Budget now being carried out.
He also noted that buyers remain cautious, but falling mortgage rates and more realistic pricing should support transaction levels through the spring.
Remaining Barriers for Young Buyers
While market conditions are improving, not everyone can benefit equally. Alastair Douglas, chief executive of TotallyMoney, warned that the biggest obstacle for many young people is not interest rates but qualifying for a mortgage at all.
High rents, rising living costs and student loan repayments continue to make saving for a deposit extremely difficult. Douglas argued that home ownership is increasingly becoming out of reach for those without financial help from family.
Signs of Broader Market Recovery
The rebound in activity follows comments from the Royal Institution of Chartered Surveyors, which recently said there were early signs the housing market is turning a corner after a challenging period in 2025.
Major lenders such as Halifax and Nationwide also reported small house price increases in January, supporting the view that confidence is gradually returning.
A More Encouraging Year Ahead
Overall, 2026 is shaping up to be a more hopeful year for those trying to step onto the property ladder. Increased supply, falling mortgage rates and wider product choice are creating better conditions for buyers than seen in several years.
However, affordability remains a serious issue for many households, particularly in London and the South East. While the market is stabilising, the gap between those who can buy and those who cannot continues to widen.
For first-time buyers with savings in place, the coming months may offer some of the best opportunities seen since before the pandemic. For others, rising costs of living and deposit requirements remain the biggest hurdle on the path to home ownership.
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