Find out where affordability, demand and limited supply are expected to drive house price growth this year
Housing markets in Scotland and northern England are best placed for house price growth in 2026, while much of southern England, including London, is expected to see weaker gains as affordability pressures persist.
Property listing platform Zoopla examined a series of housing market indicators, including local affordability, time to sell, the scale of asking price reductions and the volume of homes that have been on the market for more than six months. These metrics were combined and ranked across 120 UK postal areas to identify markets with the strongest and weakest prospects for the year ahead.
Scotland sits at the top of Zoopla’s national rankings, with all but one of the top ten postal areas located north of the border. The Motherwell (ML) area ranks first, with four other Scottish markets also placed within the top nine. Wigan, in the North West of England, is the only area from elsewhere in the UK to feature in this group.
These higher-ranked markets are characterised by relatively limited levels of unsold stock, which is contributing to fewer asking price reductions and supporting firmer price growth.
Within England, Wigan is identified as having the strongest prospects for 2026, followed by Liverpool and Stoke-on-Trent. North West markets account for six of the ten highest-ranked areas, with no locations from southern England or beyond the Midlands appearing in the top group.
According to Zoopla, the list is dominated by towns and cities where prices remain comparatively affordable, or where buyers can still access larger employment centres. Average prices in these areas sit below the UK-wide figure, and supply remains constrained, with a shortage of homes available for sale.
By contrast, housing markets across southern England and London dominate the lower end of Zoopla’s rankings. The weaker outlook is attributed mainly to stretched affordability, given higher local house prices and the ongoing adjustment to elevated mortgage rates.
Several London areas – including West Central, West, East Central, South West and North West London – sit at the bottom of the list. These locations combine a high average price of £711,140 with longer selling times. In West Central London, the time to sell is reported at more than twice the UK average of 39 days.
Zoopla notes that “value for money” is gradually improving in the capital after a decade of below-average house price growth, even though many London markets still appear at the lower end of the rankings. That shift may offer more scope for buyers focused on pricing rather than short-term capital gains.
Zoopla’s 2025 rankings proved a useful guide to actual price movements over the year. While average UK house prices rose by 1.5% in the year to November, top-ranked markets recorded growth of about 3%, compared with a 1.2% fall in those at the bottom of the table. Zoopla expects a similar divergence in 2026, with regional performance continuing to vary widely.
For mortgage professionals, the analysis underlines a two-speed market. Lenders and intermediaries serving Scotland and the North may see stronger purchase activity driven by better affordability and quicker sales, while those focused on London and the South are likely to operate in more price-sensitive conditions, with borrowers constrained by higher debt-servicing costs and larger deposits.
“This data brings into sharp focus that there isn’t a one-speed national property market, with conditions varying significantly across the country,” said Alex Rose, commercial director at Zoopla. “In places like Scotland and the North, sellers are benefiting from strong demand and faster sales, while in many Southern markets, success is more dependent on setting a competitive asking price to attract increasingly selective buyers.
“Agents who can clearly explain where their local market sits within this national picture and tailor their strategy accordingly, have a real opportunity to get ahead of the competition, win trust and instructions, and ultimately grow their business in 2026.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
