UK House Prices Rise Despite Fewer Buyers – What It Means for Homeowners in 2026

The UK housing market continues to show surprising resilience in 2026.

According to the latest Zoopla UK House Price Index, house prices are now 1.5% higher than a year ago, even though buyer demand has fallen by around 10%. While that might sound contradictory, the reality is that serious buyers and committed movers are continuing to drive the market forward.

First-Time Buyers Are Spending More

One of the most interesting findings in the report is that first-time buyers are not lowering their expectations.

Despite higher borrowing costs and economic uncertainty, the average first-time buyer is searching for a home worth £254,750, which is £10,000 more than a year ago. That’s a rise of 4.3%, significantly outpacing overall UK house price growth.

In Scotland, first-time buyers are targeting homes priced around 8% higher than last year, demonstrating continued confidence in the market. Rather than compromising on size or location, many buyers are still pursuing the type of property they really want.

Sales Are Holding Up Better Than Expected

Although buyer enquiries have fallen, actual sales activity remains remarkably robust.

Zoopla reports that the number of sales agreed is currently 1% higher than last year, suggesting that those actively looking to move are still making decisions and proceeding with purchases. More homes are also coming onto the market, giving buyers greater choice and helping transactions continue despite wider economic uncertainty.

A Tale of Two Markets

The UK market is increasingly split between stronger-performing northern regions and slower-moving southern markets.

Across Scotland, Northern England and Wales, annual house price growth ranges from around 2% to 3.6%, supported by affordability and improved mortgage lending conditions. Scotland itself is recording annual price growth of approximately 3.0%.

Meanwhile, London and parts of southern England are experiencing much weaker growth. London prices are effectively flat year-on-year, while some southern locations are seeing modest price declines. Buyers in these areas have more choice, making realistic pricing increasingly important for sellers.

Scotland Continues to Perform Well

The Scottish market remains one of the stronger performers across the UK.

Among Scotland’s major cities:

• Glasgow recorded annual growth of 3.2%
• Edinburgh saw prices rise by 2.1%
• Aberdeen returned to positive territory with growth of 1.1%

This reflects continued demand for property across much of Scotland, supported by relatively affordable house prices compared with many southern UK regions.

What Happens Next?

The second half of 2026 remains finely balanced.

Mortgage rates rose from around 4% to 5% earlier this year, and while they have eased slightly, they remain higher than many buyers would like. Geopolitical uncertainty and inflation concerns could still influence confidence and affordability over the coming months.

However, more homeowners are choosing to list their properties for sale, and the number of homes coming to market is currently 3.4% higher than last year. This should help maintain transaction levels and provide buyers with plenty of choice.

The Key Message for Sellers

If there is one clear message from Zoopla’s latest report, it is this:

Pricing correctly has never been more important.

In today’s market, well-priced homes continue to attract interest and sell. Overpriced properties, however, are taking longer to find buyers and often require price reductions later, which can be more damaging than getting the pricing right from day one.

Final Thoughts

The UK housing market in 2026 is proving more resilient than many expected. While buyer demand has cooled, committed movers and confident first-time buyers are keeping the market active. Scotland continues to outperform many parts of the UK, and although challenges remain, the outlook is one of stability rather than slowdown.

For homeowners considering a move, local market conditions and accurate pricing advice remain the most important factors in achieving a successful sale.