UK Property Market Commentary

UK Property Market Commentary – January 2026

Zoopla House Price Index | Insight from Andy McHugo, Director

As 2026 gets underway, the latest Zoopla House Price Index offers a clear snapshot of a market that is regaining momentum — cautiously, selectively, and very much driven by local conditions.

After around 18 months of adjustment, the UK property market appears more settled. Buyer confidence is improving, mortgage affordability is easing, and activity levels are picking up following a tentative end to 2025.

From my perspective on the ground in Harborne, Edgbaston and surrounding areas, that shift is already being felt.

A Market That Paused — Then Re-Engaged

The final quarter of 2025 was noticeably subdued. Leading up to the Autumn Budget, many buyers and sellers adopted a wait-and-see approach, pausing decisions while assessing affordability, tax implications and the wider economic picture.

What’s striking as we move into early 2026 is how quickly activity has returned.

Since January, enquiry levels, viewing requests and buyer engagement have all felt more purposeful. Not frantic — but active. Buyers appear clearer on their budgets, more confident in their funding, and increasingly ready to move when the right opportunity presents itself.

Mortgage Rates Ease — Confidence Improves

A key driver behind this renewed activity is mortgage affordability.

Industry data shows that five-year fixed mortgage rates at 75% loan-to-value are now at their lowest levels since 2022, and the latest Zoopla House Price Index confirms that this easing has translated into rising buyer demand.

Zoopla reports that demand has climbed since the late-2025 Budget period and is now comparable with early 2024 levels — albeit still below the peaks seen in 2023. This feels accurate locally: buyers are returning, but they’re more deliberate, value-focused and well-prepared than in previous cycles.

Price Growth Returns — But Without Excess

Nationally, house prices are showing modest but positive movement again.

The latest Zoopla House Price Index indicators align with other indices showing low-level price growth at the start of 2026, following the softer conditions seen at the end of last year. This isn’t a booming market — but it’s far from stagnant.

From a practical standpoint, this creates a healthier environment. Buyers feel less pressure to rush, while sellers who price realistically are still achieving strong outcomes.

Supply at an Eight-Year High — Choice Shapes Behaviour

One of the most important insights from Zoopla’s January data is the elevated level of supply, with homes for sale at their highest level in eight years.

This increased choice has changed buyer behaviour. Decisions are more considered, comparisons are sharper, and pricing strategy matters more than it has for some time.

Well-presented, accurately priced homes continue to attract good interest. Over-ambitious pricing, however, is far more likely to result in extended time on the market.

Regional Differences Matter More Than Ever

Zoopla’s forecasts reinforce a theme I see daily: not all markets are moving in unison.

Nationally, house prices are forecast to rise by around 1.5% during 2026, with stronger growth expected in Scotland and parts of northern England, while higher-value southern markets may see slower progress.

This divergence underlines the importance of local intelligence. National headlines rarely reflect what’s actually happening street-by-street, and strategy needs to be built on local demand, stock levels and buyer profiles — not generic averages.

What This Means for Buyers and Sellers in 2026

The early signals from the Zoopla House Price Index, combined with on-the-ground activity, point to a market that is:

More balanced than late 2025
Supported by improving mortgage affordability
Offering greater choice for buyers
Delivering modest but tangible price growth
Increasingly shaped by regional and local conditions

For sellers, success in 2026 will come from realistic pricing, strong presentation and targeted marketing. For buyers, opportunity exists — particularly where choice allows for negotiation and careful decision-making.

As ever, those who rely on local insight rather than broad national narratives will be best placed to make confident, informed moves this year.

Andy McHugo
Director