UK housing listings surge as mortgage rates fall and prices stabilize

The UK Housing market has seen an uptick as homes being put up for sale, are increasing as borrowing conditions improve and confidence steadies.

Data from property website Zoopla shows February is on track to record the highest number of newly listed homes for any February in the past decade.

The figures come alongside signs of firmer pricing and improved mortgage availability.

Together, they point to a market that is regaining activity after a period shaped by political uncertainty and tighter financing conditions in the run-up to the November 2025 budget.

Listings jump

Zoopla’s latest update indicates that 2026 has opened with a strong rebound in activity.

A key driver has been the fall in mortgage rates to their lowest level in four years.

Access to borrowing has also improved, especially for first-time buyers.

The data shows a clear shift on the supply side. There are already 6% more homes for sale than a year ago.

That number is expected to climb further in the months ahead as more households decide to move.

According to Zoopla, the increase in sellers reflects stronger confidence and a renewed willingness among homeowners to list properties.

Prices edge higher

Broader market indicators also show stabilising prices.

Royal Institution of Chartered Surveyors recently reported tentative signs that the market may be turning a corner after what it described as a challenging period.

Two major mortgage lenders have recorded monthly price growth.

Halifax said average house prices rose 0.7% in January, while Nationwide reported a 0.3% increase over the same month.

At the same time, separate figures from data provider Moneyfacts show that first-time buyers now have the widest choice of low-deposit mortgages for at least 18 years.

This expansion in product availability has been linked to lenders loosening affordability rules and competing more actively for new borrowers.

Buying versus renting

Lower mortgage rates have also shifted the balance between buying and renting.

Zoopla estimates that 40% of UK homes are now cheaper to buy than rent. In some regions, more than half of homes fall into that category.

This change is largely due to reduced borrowing costs and greater mortgage access.

As a result, some renters may find monthly repayments comparable to or below rental costs, depending on location and deposit size.

However, while borrowing conditions have improved, affordability barriers remain.

According to an expert, the main obstacle for many younger buyers is not the mortgage rate itself but qualifying for a loan.

High rents and living costs continue to make saving for a deposit difficult.

Student loan repayments, elevated interest rates on those loans, and frozen repayment thresholds add further pressure, limiting access to home ownership for those without family financial support.

Zoopla also noted that the growing supply of homes is expected to keep house price growth in check this year, even as activity strengthens.

More choice for buyers may support transactions while preventing rapid price acceleration.