Highest number of homes listed for sale for a decade and falling mortgage rates signal good news for first time buyers
40% of homes are now cheaper to buy than rent – up from 25% a year ago
February on track to record the highest number of newly listed homes for sale in a decade as confidence returns to the housing market
There are currently 6% more homes for sale than a year ago – this is set to rise in the coming months, keeping house price growth in check
40% of UK homes now cheaper to buy than rent thanks to improving mortgage rates and easing lending criteria – rising to over half of homes in some regions
House prices have increased by 1.3% over last 12 months to the end of January
House prices inflation higher than a year ago in northern England and Scotland
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 prices 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 home on the market shows a strong desire to move home.
Lower mortgage rates and improved affordability of mortgages means 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 more healthy and 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.”
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