Key takeaways from Zoopla’s February 2026 House Price Index

As we move through the start of the year, the UK property market is showing strong sales volume, bolstered by average mortgage rates dropping below 4% for the first time since 2022. This renewed lender affordability, coupled with growing confidence, is bringing a record number of sellers to the market.

House prices remain modest despite an uplift in sales numbers

The average house price in the UK over the last three months was £269,000 according to Zoopla, indicating a rise of 1.3% over the past year; however, still down from 1.8% a year ago.

Despite this, the year has started with a big rebound in market activity compared to the sluggish run-up to the end of last year.

Primarily driven by the lowest mortgage rates the market has seen in four years, with an increased advance in mortgage access, particularly for first-time buyers, says Zoopla.

Data shows that the number of agreed sales surged massively, compared to the strong start to 2025, which was below by 3%. Sales are currently sitting at the fourth strongest February over the past decade, despite there being 8% fewer buyers.

Could February bring a record number of sellers?

As confidence returns to the sector, the housing market is experiencing an earlier surge than usual in people listing their homes for sale, as stated in the report.

Zoopla have said that this month could see their record broken. The number of newly listed homes put up on their site is on course to be the highest in any February over the last decade. Demonstrating improved confidence and a sturdy desire to move.

The Royal Institution of Chartered Surveyors (RICS) stated there were “tentative signs” that the market is turning a corner after a difficult period leading up to the November budget of last year, which may have created uncertainty.

Low mortgage rates are improving confidence

The overall health of the UK property market is being supported largely by the “falling base rates and strong competition between mortgage lenders”, states Zoopla.

Reports show that the average mortgage rates for new loans fell to their lowest over the past four years in January. The two most common fixed-rate mortgage terms of 2-year and 5-year are now both below 4% for the first time since 2022.

The homeowners' alliance predict rates may fall further in 2026, and although it's likely the base rate will drop, Zoopla suggests that mortgage rates are unlikely to drop much more than they have. However, buyers have access to the lowest rates seen for years, especially those with big deposits. 

What this means for the market

While many suggest that 2026 will be a strong year for the UK property market in terms of growth, Zoopla's report shows that buyers have more choice and that the increase in property supply would “keep house prices in check” in the next year.

The report would suggest there has been a big surge in sellers with continued confidence in the market, and that seems to be an improving pattern in the sector.

Additionally, 40% of UK homes were now cheaper to buy than they were to rent as a result of the lower mortgage rates and lenders giving more wiggle room to buyers.

Should you invest in UK buy-to-let property in 2026?

2026 is a good time to invest in UK property. The market is growing, and the cost of borrowing is falling at a much lower level than it was in past years. Combine that with forecasted growth, and this is a good time to buy UK property.

Want to know more and discover the best property investment areas for 2026? Contact our team today for a free consultation.