Buyer demand across the UK housing market is picking up as mortgage rates fall and confidence returns following a subdued end to 2025. New data shows activity has recovered after uncertainty around the Autumn Budget delayed many moving decisions, although conditions remain more balanced than a year ago. Buyers are now returning to a market with greater choice, higher stock levels and more regional variation in pricing performance.
- Activity is in line with early 2024 but 9% below last year’s strong start
- Five-year fixed mortgage rates at 75% LTV have fallen to 4%
- Homes for sale are up 6% year-on-year, the highest level in eight years
- UK house prices rose 1.2% over 2025
Original article source: Property118
What’s emerging is a quieter return to normality after a hesitant end to last year. Falling mortgage rates and renewed lender competition are doing just enough to restore confidence among buyers who paused decisions rather than abandoned them altogether.
Crucially, those buyers are stepping into a market with far more choice. Stock levels are materially higher than a year ago, and in many areas this has shifted the balance away from urgency and towards discernment. Pricing realism and presentation now matter again, which is a healthy correction after several years where sellers often held the upper hand.
Regional divergence is also becoming more pronounced. More affordable markets across the Midlands, the North, Scotland and Northern Ireland continue to show resilience, supported by lower entry prices and stronger underlying demand. In contrast, southern England and London are adjusting to higher transaction costs and a larger pool of available homes, reinforcing a buyers’ market in the capital.
This environment is broadly constructive. Softer conditions in parts of the South are less a sign of weakness and more an indication of a market recalibrating to higher borrowing costs and more normal supply levels. Increased choice allows for more selective acquisitions, while stable national price growth points to underlying support rather than volatility.
Overall, the picture is one of a market finding its footing again. Activity may not match last year’s exceptional start, but the combination of easing finance, wider choice and more rational pricing creates a steadier platform for informed buyers prepared to take a longer-term view.
