February is on track to record the highest number of new home listings in a decade, according to Zoopla’s latest House Price Index.
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.
Seller surge sees more homes on the market
Reflecting improved confidence and a strong desire for many households to move, this month is on track to record the highest number of new listings in February for a decade.
Currently, there are six per cent more homes for sale than a year ago – something Zoopla expects to rise further in the coming months. Not only will this increase choice for buyers, but it will help to keep price increases in check over the remainder of the year.
Mortgage rates putting homes within reach
Average mortgage rates for new loans are at their lowest level for 4 years. This is thanks to lower base rates and stronger competition between lenders. In real terms, this means that rates on both two-year and five-year fixed deals are now below 4% for the first time since 2022.
As such, buyers currently have access to some of the best deals seen for several years, particularly those with larger deposits, and this is supporting increased sales activity.
More homes to buy for less than the cost of rent
Criteria in terms of how mortgage lenders assess affordability have eased over the past year. Today, lenders are typically checking that borrowers can afford a higher mortgage rate of 6.5%, which is lower than an 8.5% a year ago. This means that 40% of homes currently for sale on Zoopla are cheaper to buy with a mortgage than the cost of renting locally – assuming a 20% deposit. This is a big improvement from 25% last year, showing that home ownership has become more affordable than in recent years.
In some regions – the North East, North West and Scotland – over half of homes for sale are cheaper to rent than buying at a 6.5% mortgage ‘stress rate’.
House price growth remains in check
Despite the increase in market activity, house price growth remains subdued at 1.3% growth (12 months to January) compared to a year ago. This is versus 1.8% the previous year.
Northern Ireland is registering the fastest rate of price growth at 8%, and across Great Britain, the North West is the strongest-performing region, with prices up 3.3% year-on-year, followed by Scotland (2.8%) and the North East (2.5%). In contrast, average prices in London are 0.2% lower than a year ago.
The areas with higher price growth are more affordable and have fewer homes for sale than a year ago, limiting buyer choice and supporting price growth. Across the rest of the country, price growth is the same or weaker than a year ago.
Southern England remains the softest market, with average prices broadly unchanged over the last 12 months. However, this marks an improvement on the more widespread price falls seen in the second half of 2025.
Commenting on the report and current outlooks, Richard Donnell, Executive Director at Zoopla, said: “Despite improved levels of market activity, subdued house price inflation is good news for buyers and sellers and represents a more stable market. More sellers putting their homes on the market shows a strong desire to move home.
Lower mortgage rates and improved affordability of mortgages mean now could very well be the best time to buy a home in recent years, especially for first-time buyers with more homes available to buy for less than the cost of renting.
“We expect continued modest rates of price inflation over 2026 which will support healthy levels of sales with some wide variations across local markets. Sellers need to seek the advice of local agents to get the right strategy for their home.”
Sarah Cartlidge, Branch Manager at Merseyside agent Fraser Reeves, said: “We’re seeing multiple factors coming together, including improving mortgage rates and easing lending criteria, to make a healthier and more 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.”
Nathan Emerson, CEO of Propertymark, comments:
“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, says:
“Not only has there been an uplift in buyer activity since the beginning of the year, but we have also seen more sellers putting their homes 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.”
Adrian Moloney, Group Lending Distribution Director at Precise, said:
“Today’s figures reinforce the affordability turning point we’ve been anticipating. Falling mortgage rates, easing stress tests and greater lender flexibility are shifting the buy-versus-rent equation in many parts of the country. For a growing number of tenants, particularly outside London, the monthly cost comparison is no longer the barrier it once was.
We are still in the early stages of this shift, but the foundations are more robust than a short-term rate movement. Wage growth, stabilising house prices, and increased competition among lenders are collectively improving borrowing power. That said, affordability remains finely balanced, and confidence will depend on continued economic stability.
Those first-time buyers who have already built a deposit but were waiting for repayment costs to become more manageable are likely to move first. Increased flexibility around mortgage terms, loan-to-value ratios and a more holistic view of income are making a tangible difference.
For landlords, the picture is more nuanced. While some local markets may see tenant demand soften as renters transition into homeownership, the fundamentals of the private rented sector remain strong. Our latest Landlord Leaders research shows 62% of landlords are optimistic about the future and 28% are committed to growing their portfolios long term. Professionalisation continues to reshape the sector, with many adapting their business models to focus on long-term resilience.
Ultimately, demand for housing – whether rented or owned – remains structural. Stability in rates and policy will be key to ensuring both aspiring buyers and landlords can plan with confidence.”
