Average UK house prices: last 3 months
The average house price in the UK is £269,900. This is a rise of 1.3% over the past year, down from 1.8% a year ago, with house price growth remaining modest despite a lift in housing market activity.
November 2025 | December 2025 | January 2025 | Annual price change (£) | Annual price change (%) | |
All UK property | £269,500 | £269,800 | £269,900 | £3,470 | 1.30% |
Flats/maisonettes | £191,600 | £191,400 | £191,500 | -£2,440 | -1.30% |
Terraced houses | £239,200 | £239,100 | £240,100 | £4,410 | 1.90% |
Semi-detached houses | £277,700 | £277,800 | £278,800 | £7,290 | 2.70% |
Detached houses | £452,900 | £453,000 | £453,900 | £7,320 | 1.60% |
Market boosted by strong sales numbers
2026 has started with a strong rebound in housing market activity. This is driven by the lowest mortgage rates in 4 years and improved access to mortgages, particularly for first-time buyers.
The number of agreed sales has increased sharply, but remains 3% below the very strong start to 2025. Sales are currently running at the fourth strongest February level in the past decade, even though there are 8% fewer buyers in the market than a year ago.
Surge in sellers coming to the market
One clear trend in February 2026 is a surge in the number of sellers bringing their homes to the market.
February is on track to record the highest monthly number of new listings in a decade, reflecting improving seller confidence and a strong desire to move home.
There are already 6% more homes for sale than a year ago, and this is expected to rise further in the coming months.
This increased supply boosts choice for buyers and will keep house price growth in check over 2026.
Lowest mortgage rates in 4 years supporting sales
Healthy market activity is supported by falling base rates and strong competition between mortgage lenders.
As a result, average mortgage rates for new loans fell to their lowest level in 4 years in January. Rates on both 2-year and 5-year fixed deals are now below 4% for the first time since 2022.
While the base rate is likely to be cut again this year, mortgage rates are unlikely to fall much further. Even so, buyers currently have access to some of the lowest rates seen for several years, particularly those with larger deposits.
More homes to buy for less than the cost of rent
A key development over the past year is how mortgage lenders assess affordability - in particular, the ability of a borrower to afford higher mortgage rates in the future.
Lenders are typically assessing the ability to pay a 6.5% mortgage ‘stress rate’. This rate sat at 8.5% last year.
Lower stress rates mean 40% of homes currently for sale on Zoopla are now cheaper to buy with a mortgage than to rent locally. This is up from just 25% of homes when tested against the higher stress rates a year ago.
These changes have delivered the strongest improvement in first-time buyer affordability since 2022, when mortgage rates began rising.
Regionally, more than half of homes for sale are cheaper to buy than rent in the North East and Scotland, followed by the North West. In contrast, higher house prices in London and the Midlands mean that fewer than 40% of homes are cheaper to buy than rent.
These changes benefit all buyers using a mortgage, supporting higher house price growth across northern England and Scotland. The impact is more limited across southern regions where higher stamp duty costs are an increasingly costly financial hurdle for home buyers.
House prices firming on improved affordability
Average earnings have grown faster than house prices for the last 3 years. Alongside lower mortgage rates and relaxed affordability testing, this further improves housing affordability and supports sales numbers.
Annual house price growth is higher than a year ago in 4 areas: the North West, Scotland, the North East and Northern Ireland. These markets are more affordable and have fewer homes for sale than a year ago, limiting buyer choice. This is supporting above-average house price increases.
Across the rest of the UK, house price growth is the same or weaker than a year ago. In southern England, house prices are unchanged over the last 12 months. This is an improvement on the widespread house price falls seen over the second half of 2025.
However, affordability pressures and higher stamp duty costs continue to weigh on demand in southern regions. This is compounded by increased supply, with up to 16% more homes available in some areas. As a result, price growth is likely to remain modest through 2026.
Sellers in southern England who are planning to move this year will need to price realistically to secure a speedy sale. Be sure to factor this into the offer you make on your next purchase.
What’s next for the UK housing market in 2026?
The housing market is seeing improved levels of market activity and subdued house price inflation. This is good news for buyers and sellers and represents a more stable market. Market conditions have improved but some headwinds remain.
We expect continued modest rates of price inflation over 2026. This will support healthy levels of sales with wide variations across local markets, making the advice of local agents essential in setting the right pricing strategy for your home.
About the Zoopla House Price Index
The Zoopla House Price Index (HPI) tracks the change in achieved sales price of homes (it’s not an index that tracks asking prices). The index uses sold prices, mortgage valuations and data for recently agreed sales with more input data than any other index. The methodology is designed to accurately track the change in pricing for UK housing. It’s revisionary and non-seasonally adjusted.
Notes on this month’s data:
The number of agreed sales has increased sharply, but remains 3% below the very strong start to 2025: Four weeks to 15 February 2026 vs same period in 2025.
Sales are currently running at the fourth strongest February level in the past decade: Compares the first 2 weeks of February to the same period over the last decade.
Average mortgage rates for new loans fell to their lowest level in 4 years in January: Bank of England BankStats - average mortgage rate for new business at 75% loan-to-value.
40% of homes currently for sale on Zoopla are now cheaper to buy with a mortgage than to rent locally: We looked at 1-3 bed homes for sale priced below £600,000, assuming a 20% deposit, which was the UK average in 2025. The monthly mortgage repayments for a loan with a 30-year term were compared to average rental costs in the same local authority, assuming a mortgage affordability ‘stress rate’ of 6.5%. The comparison to last year is based on a mortgage stress rate of 8.5%.
Previous House Price Index reports
See more stories from our House Price Index