UK house prices rose 1.2% over the past year, increasing by £3,200 to reach £269,800 at the end of 2025, according to the latest data from Zoopla.
Price growth has been strongest in more affordable areas of the Midlands, northern England, Scotland, and Northern Ireland, with increases up to four times the national average. In contrast, prices in the South-East and South-West saw small declines of around 0.1%.
In London, the number of homes on the market has risen significantly, creating a buyers’ market and putting downward pressure on prices.
While demand for well-priced homes remains, sellers in the capital and southern England need to be mindful of local market conditions as they plan their moves. Zoopla expects these trends to continue in early 2026.
Nathan Emerson, CEO of Propertymark, said: “Buyer confidence is slowly returning as mortgage rates ease, but this is a very different market compared to the one seen a year ago. Increased choice means buyers are taking more time, negotiating harder, and are far more price-sensitive, particularly in higher-value areas.
“For sellers, this underlines the importance of realistic pricing and good presentation from the outset. Homes that are priced correctly are still attracting interest and achieving sales, but those that are over-optimistic are more likely to sit on the market.
“While affordability pressures remain, the fact that buyers are re-engaging shows there is a strong underlying demand to move. With more stock available, Propertymark member agents are playing a crucial role in guiding both buyers and sellers through changing local market conditions to help transactions progress in 2026.”
Tom Bill, head of UK residential research at Knight Frank, commented: “While the pressure on mortgage rates was down in the first fortnight of the year, borrowing costs have climbed sharply since mid-January. The reasons include stronger-than-expected UK economic data, global jitters around the prospect of fiscal loosening in Japan and similar concerns over the tax and spend plans of any successor to Keir Starmer. Everything is still finely-poised but it means the current outlook for the UK housing market is slightly less rosy than it was at the start of the year.”
Adam Feather, managing direct, Robert Anthony Estate Agents, added: “A sharp rise in the number of properties for sale is making pricing accurately essential in an increasingly competitive market. Homes are selling, but only where vendors are realistic on price and align expectations with current buyer demand.”
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