Zoopla’s newest Home Value Index exhibits the housing market is on monitor for its busiest 12 months since 2022, with 9% extra houses anticipated to alter fingers in 2025. However patrons shouldn’t count on massive value hikes – home costs are are up simply 1.1% year-on-year, and down from 1.9% in 2024.
The property portal expects common UK home costs to extend by 1.5% over 2026, with the north-south divide in progress to stay.
Housing gross sales are anticipated to be 2% decrease in 2026 at 1.18m.
Extra houses promoting, however costs barely budge – Property Trade Eye
Trade reactions:
Nathan Emerson, CEO of Propertymark: “We proceed to see a housing market that’s responding positively regardless of financial turbulence. Now that we have now seen an additional discount in base charges down to three.75%, this can hopefully spur first-time patrons to proceed to drive the best degree of residence strikes as decrease borrowing prices are easing month-to-month compensation pressures and bettering affordability, significantly for these getting into the marketplace for the primary time.
“The falls in charges have helped launch a few of the pent-up demand that constructed up in the direction of the top of this 12 months, supporting transaction ranges as we transfer into 2026. Nonetheless, whereas exercise is choosing up, knowledge exhibits that home value progress stays modest. With a superb provide of houses accessible and affordability nonetheless a key constraint, particularly in higher-priced areas, value rises are more likely to stay measured reasonably than speed up quickly.”
James Nightingall, founding father of HomeFinder AI: “First-time patrons have been the one demographic that has proven an identical degree of motivation to final 12 months. That being mentioned, and though present mortgage charges could also be beneficial, some first-time patrons nonetheless battle to avoid wasting up a enough deposit to get on the property ladder. On a optimistic observe, we’re seeing an rising variety of builders who provide incentives or decrease their asking value which has allowed extra first-time patrons to make the step in the direction of homeownership this 12 months.”
Adam Feather, managing direct, Robert Anthony Property Brokers: “The vast majority of home hunters paused their search within the run-up to the Autumn Finances, resulting in fewer transactions and prompting some sellers to scale back their asking costs to draw gives. First-time patrons, nevertheless, have remained energetic, with many trying to benefit from falling mortgage borrowing charges.”
Polly Ogden Duffy, managing director, John D Wooden & Co: “First-time patrons drive each a part of the property market. Once they kick-start exercise on the entry degree, it creates momentum all through your entire system, permitting chains to kind and transactions to progress throughout the nation.
“With a continued scarcity of rental houses pushing rents to report highs, shopping for is more and more the extra reasonably priced possibility for a lot of households – supplied they’ll cross affordability checks and safe a mortgage. That’s why the current easing of affordability standards is such a optimistic step.
“In lots of instances, patrons can comfortably handle month-to-month repayments however have traditionally struggled to entry lending. Better flexibility from lenders is starting to alter that, serving to extra individuals make the leap onto the property ladder. Supporting first time patrons on this method is crucial to sustaining wholesome ranges of market exercise into 2026.”
Extra houses promoting, however costs barely budge
