Zoopla House Price Index Reaction
The latest index from Zoopla shows that: –
First-time buyers are targeting homes worth £10,000 more than a year ago, with average prices up 4.3% to £254,750 – nearly 3x the rate of UK house price growth
There are 6% fewer first time buyers in the market than this time last year, but those that remain are not compromising on what they want to buy
Overall, UK sales agreed are running 1% ahead of last year – the first positive sales agreed figure of 2026 – despite buyer demand being down 10%, as committed movers of all types continue to agree to buy homes
UK house price inflation edges up to 1.5%, with prices rising between 2-3.6% across northern regions, and holding flat to negative in London and the South East
Housing market activity is holding up in the face of uncertainty and higher borrowing costs, though with fewer buyers than a year ago the outlook remains finely balanced
Here is the reaction from the Industry
Marc von Grundherr, Director of Benham and Reeves, commented:
“London continues to demonstrate remarkable resilience and while headline house price growth across the capital remains largely flat, the fact that sales agreed are up 8% year-on-year tells a very different story beneath the surface.
Buyers remain active, but they are also more price conscious and selective than they were during the market highs of recent years. At the same time, increased stock levels are giving them greater negotiating power and this is helping to keep price growth subdued despite strong levels of transactional activity.
What’s particularly notable is the strength of the first-time buyer market, with average target purchase values now surpassing the £500,000 mark for the first time. This suggests that while some buyers may have stepped back due to higher borrowing costs, those who remain committed are still prepared to stretch for the right property in the right location.”
Verona Frankish, CEO of Yopa, commented:
“While there remains a degree of economic uncertainty, the latest market data shows that the UK property market continues to hold up remarkably well and, importantly, transactional activity is moving in the right direction.
The fact that sales agreed have edged ahead of last year for the first time in 2026 is an encouraging sign that committed buyers and sellers are continuing to press ahead despite a more cautious wider backdrop.
We’re also seeing the strongest levels of house price growth continue to come from more affordable northern markets where improved mortgage affordability has had the greatest impact. At the same time, first-time buyers remain highly motivated and are clearly unwilling to compromise when it comes to the type and quality of home they want to buy.
Overall, this remains a market driven by necessity and long-term confidence rather than short-term speculation and that is helping to create a far more stable foundation for sustained market activity.”
Chris Hodgkinson, Managing Director of House Buyer Bureau, commented:
“While the market has remained more resilient than many expected, the decline in buyer demand is still a very important warning sign and one that is likely to impact both transaction times and seller expectations over the months ahead.
We’re increasingly seeing a market where committed buyers are still progressing purchases, but where a significant proportion of more hesitant or discretionary movers have stepped back to assess the economic outlook and direction of mortgage rates.
This reduction in buyer activity inevitably creates a more drawn out sales process, particularly for sellers who fail to price realistically from the outset. As a result, many homes are taking longer to sell, reductions are becoming more common and overall market sentiment remains finely balanced.
Whilst sales levels are holding steady for now, the market remains highly sensitive to affordability pressures and confidence levels and so any further economic uncertainty could quickly weigh on activity.”
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