UK Homes for Sale Reach Highest Levels in a Decade

February 2026 is on track to record the highest number of new home listings in the UK for ten years, according to Zoopla’s latest house price index. The property portal reports a 6% increase in homes for sale compared to the same time last year, with expectations that this upward trend will continue in the coming months. This rise reflects a recovering housing market, supported by improving mortgage rates and a growing desire among homeowners to move.

Market Dynamics: Landlords Selling Up and Buyer Caution

Tom Bill, head of UK residential research at Knight Frank, highlights that part of the increase in house sales is driven by landlords choosing to sell their properties. He explains, “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.” This suggests that regulatory pressures are influencing landlords’ decisions, contributing to greater market supply.

Bill also notes that while buyers remain cautious, the prospect of further mortgage rate reductions and more realistic asking prices are likely to support transactions this spring. However, he warns that political developments, particularly the Labour leadership race, may cause some plans to be put on hold, indicating potential short-term uncertainty in the market.

House Price Growth Remains Subdued

Despite the increased activity, house price growth remains modest. Zoopla reports a 1.3% rise in house prices over the 12 months to the end of January 2026, down from 1.8% the previous year. This subdued growth is partly attributed to lower average mortgage rates for new loans, which are currently at their lowest level in four years due to reduced base rates.

For landlords, this means that while property values are increasing, the pace is slow, which may affect investment returns and rental pricing strategies. The balance between supply and demand appears to be stabilising prices, which could benefit tenants through more affordable rents in some areas.

Regional Variations in Price Growth

The report highlights significant regional differences in house price growth across the UK. Northern Ireland leads with an 8% increase, while the North West of England is the strongest performer in Great Britain, with prices up 3.3% year-on-year. Scotland and the North East follow with growth rates of 2.8% and 2.5%, respectively.

In contrast, London has seen a slight decline in average prices by 0.2% over the same period. Southern England remains the softest market, with prices broadly unchanged but showing improvement compared to the price falls experienced in the latter half of 2025. These regional trends are important for landlords and agents when considering investment locations and rental market conditions.

Positive Outlook Despite Market Challenges

Richard Donnell, executive director at Zoopla, describes the current housing market as positive despite the subdued price inflation. He states, “More sellers putting their homes on the market shows a strong desire to move home.” Donnell adds that lower mortgage rates and improved affordability mean now could be one of the best times to buy in recent years, particularly for first-time buyers.

He anticipates continued modest price inflation throughout 2026, which should support healthy sales volumes, although local market conditions will vary. Donnell advises sellers to consult local agents to develop the right strategy for their properties, emphasising the importance of tailored advice in a diverse market.

Industry Perspectives on Supply and Affordability

Nathan Emerson, CEO of Propertymark, welcomes the renewed confidence in the housing market but stresses the need for increased housing supply. He comments, “Rising house prices are not sustainable without a significant boost to the supply of genuinely affordable homes.” Emerson highlights that improved mortgage rates and affordability checks are helping more people enter or move up the housing ladder, contributing to greater market stability in 2026.

He also notes that stronger price growth outside London reflects changing working patterns and affordability considerations, as people reassess where they can achieve a good standard of living. However, Emerson warns that meeting housing delivery targets is essential to maintain long-term affordability and prevent buyers from being priced out of more attainable areas.

What This Means for Landlords and Letting Agents

The increase in homes for sale and modest price growth suggest a stabilising market with more opportunities for landlords to sell or acquire properties. However, the pressure on landlords to sell due to regulatory changes and red tape may reduce rental stock in some areas, potentially impacting rental supply and demand dynamics.

Letting agents should prepare for regional variations in market activity and advise landlords accordingly, particularly in areas experiencing stronger price growth or supply changes. The improving mortgage environment may also encourage first-time buyers, potentially affecting demand for rental properties.

Suggested internal link anchors

• housing market recovery
• mortgage rates
• landlords selling properties
• house price growth
• regional property markets
• property supply and demand
• affordability in housing
• first-time buyers
• letting agents advice
• UK rental market trends

TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/