The UK housing market is experiencing a significant uplift, with this month poised to record the highest number of new homes listed for sale in February for a decade.
Property website Zoopla reports a 6 per cent increase in available properties during the four weeks leading up to 15 February, compared with the same period last year.
This surge in listings, coupled with a decline in mortgage rates, creates a particularly favourable environment for first-time buyers, according to Zoopla.
The increased choice for prospective purchasers is expected to help moderate property price growth throughout the year. Furthermore, many lenders have adjusted their criteria, potentially enabling more individuals to secure larger loans.
The number of sales being agreed has increased sharply, but remains below the “very strong start” to 2025, the report said.
Sales are currently running at the fourth strongest February level in the past decade, even though there are fewer buyers in the market than a year ago.
Zoopla estimated 40 per cent of homes currently for sale on its website are cheaper to buy with a mortgage than the cost of renting locally, assuming someone has a 20 per cent deposit to put down, which is an improvement compared with 25 per cent last year. People’s individual circumstances will vary.
House prices increased by 1.3 per cent in the 12 months to January, Zoopla said, ranging from an 8.0 per cent rise in Northern Ireland to a 0.2 per cent fall in London.
Within Britain, the North West of England was identified as the strongest-performing region, with prices up 3.3 per cent annually, followed by Scotland (2.8 per cent) and the North East (2.5 per cent).
In Wales, house prices increased by 2.2 per cent annually.
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, Zoopla said.
Looking at southern England, where affordability is more stretched, the report said: “Sellers in southern England who are planning to move this year will need to price realistically to secure a timely sale and should factor this into the offer they make on their next purchase.”
Zoopla’s house price index uses sold prices, mortgage valuations and data for agreed sales to make calculations.
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.”
David Fell, lead analyst at property firm Hamptons said: “With the advantage of not having a home to sell, first-time buyers have often been favoured by sellers above others making offers at a similar level.
“This has allowed first-time buyers to negotiate harder than they have previously. In February, a fifth were able to secure a discount of 10 per cent or more from the asking price.”
Nigel Bishop, founder of buying agency Recoco Property Search, said: “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.”
Tom Bill, head of UK residential research at Knight Frank, said: “House prices are being kept in check by rising supply as plans delayed by last year’s budget are activated and more landlords attempt to sell due to red tape.
“Buyers are more circumspect than sellers but further mortgage rate declines and increasingly realistic asking prices will support transactions this spring.”
Alastair Douglas, TotallyMoney chief executive said: “Falling mortage rates and more homes on the market is good news for those who can get on the housing ladder. But for millions of young people, the problem isn’t the rate – it’s getting a mortgage in the first place.”
Nathan Emerson, chief executive of property professionals body Propertymark, said: “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.”
Here are annual price changes, according to Zoopla:
Northern Ireland, 8.0%
North West, 3.3%
Scotland, 2.8%
North East, 2.5%
Wales, 2.2%
Yorkshire and the Humber, 2.1%
West Midlands, 2.0%
East Midlands, 1.0%
Eastern England, 0.6%
South West, 0.0%
South East, minus 0.1%
London, minus 0.2%.
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