Increased housing supply shifts bargaining power towards borrowers and their brokers
Buyer activity has picked up at the start of 2026 as confidence improves and mortgage pricing edges down, while a larger pool of properties on the market is changing the balance of power between buyers and sellers.
According to Zoopla’s latest UK House Price Index, demand from purchasers has strengthened since the turn of the year, following a subdued close to 2025 when many households deferred moving decisions amid uncertainty over the autumn Budget.
Activity is now broadly comparable with early 2024, though it remains around 9% lower than the unusually strong opening to last year, when transactions were accelerated ahead of stamp duty changes.
Competitive mortgage pricing is supporting this recovery in sentiment. The average five-year fixed rate at 75% loan-to-value has fallen to 4%, its lowest level since 2022, improving affordability and bringing more prospective buyers back into the market.
However, those returning are facing a very different landscape to 12 months ago. The total number of homes listed for sale is 6% higher than a year earlier, with estate agents now holding the largest stock of properties for eight years. This additional supply is reducing bidding pressure and putting greater weight on accurate pricing and presentation for vendors seeking committed buyers.
Across the UK, price movements remain modest. Average values rose by 1.2% over the 12 months to the end of 2025, an increase of about £3,200, taking the typical UK house price to £269,800. Growth has been stronger in more affordable markets in the Midlands, northern England, Scotland and Northern Ireland, where values have risen up to four times faster than the national rate. By contrast, small price falls of around 0.1% have been recorded across the South East and South West.
Southern England continues to show greater price sensitivity as higher absolute purchase costs and a larger volume of stock weigh on negotiations. London now has significantly more homes on the market than a year ago, reinforcing a buyers’ market in the capital and contributing to price declines over 2025.
Zoopla’s outlook suggests that increased listings will continue to support buyer activity through the early part of 2026. More homes for sale are bringing more purchasers into the market, but vendors are being encouraged to factor in local supply dynamics, realistic asking prices and property condition if they want to secure offers. For advisers, this points to a market where well-priced, sensibly financed purchases can still transact, but over-ambitious pricing may prolong marketing periods and complicate pipeline forecasting.
“After a weak end to 2025, homebuyer confidence is returning as mortgage rates ease and those who delayed decisions last year return to the market.” said Richard Donnell (pictured right), executive director at Zoopla. “The first few weeks have seen buyer demand fall short of the very strong start to 2025 when buyers were rushing to beat the stamp duty deadline.
“Market conditions vary across the country and are defined by the level of choice for home buyers. There are more homes for sale and more choice is welcome news for buyers, but sellers need to adapt to a more competitive market where pricing and presentation really matter for serious sellers looking to move in 2026.”
Nathan Emerson, chief executive officer at Propertymark, underlined the implications for both sides of the transaction. “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.”
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