February set to see highest number of new house listings in a decade

The UK housing market is experiencing a significant upturn and this month is set to record the highest number of new homes available for sale in February in the last decade.

Property website Zoopla reported a 6 per cent increase in available properties in the four weeks to February 15 compared to the same period last year.

According to Zoopla, this increase in listings, combined with the decline in mortgage rates, creates a particularly favorable environment for first-time buyers.

Increased choice for potential buyers is expected to help moderate property price growth throughout the year. What’s more, many lenders have adjusted their criteria, making it possible for more people to get larger loans.

The number of agreed sales rose sharply but remained below the “very strong start” for 2025, the report said.

Even though there are fewer buyers in the market than a year ago, sales are currently running at the fourth strongest February in a decade.

Zoopla estimates that 40 per cent of homes currently for sale on its website are cheaper to buy with a mortgage than the cost of renting locally; Assuming one has a 20 percent deposit up front, this is an improvement from last year’s 25 percent. People’s individual circumstances will vary.

Zoopla said house prices rose 1.3 per cent in the 12 months to January, ranging from an 8.0 per cent rise in Northern Ireland to a 0.2 per cent fall in London.

Within Britain, the North West of England was identified as the strongest performing region, with prices rising by 3.3 per cent annually; followed by Scotland (2.8 per cent) and the North East (2.5 per cent).

House prices in Wales increased by 2.2 percent annually.

Zoopla said areas with higher price growth were more affordable and had fewer homes for sale than a year ago, limiting buyer choice and supporting price growth.

Looking at southern England, where affordability is more strained, the report said: “Sellers planning to move in the south of England this year will need to set a realistic price to sell on time and include this in the offer they make on their next purchase.”

Zoopla’s house price index uses sold prices, mortgage valuations and data on agreed sales to make its calculations.

Zoopla Chief Executive Richard Donnell said: “Despite the improvement in market activity, low inflation in house prices is good news for buyers and sellers and represents a more stable market. The increase in sellers putting their homes on the market shows there is a strong desire to move home.”

“Lower mortgage rates and increasing affordability of mortgages mean this could be the best time to buy a home in recent years, especially for first-time buyers who have more homes available for less than the cost of renting.

“We expect moderate rates of price inflation to continue in 2026, which will support healthy sales levels with some wide variation across local markets. Sellers should seek the advice of local agents to find the right strategy for their home.”

“Due to the advantage of not having a home to sell, first-time buyers are often favored by sellers over other sellers making similar offers,” said David Fell, principal analyst at a Hamptons real estate firm.

“This has allowed first-time buyers to bargain harder than before. In February, one in five were able to get 10 per cent or more off the asking price.”

Nigel Bishop, founder of buying agency Recoco Property Search, said: “Whilst there has been a slight increase in prices, the increase in homes for sale will allow more buyers to have the upper hand when negotiating prices.”

Tom Bill, Knight Frank’s head of UK housing research, said: “House prices are being held in check by increased supply as plans delayed by last year’s budget are activated and more homeowners seek to sell due to red tape.

“Buyers are more cautious than sellers, but declines in mortgage interest rates and increasingly realistic asking prices will support transactions this spring.”

Alastair Douglas, CEO of TotallyMoney, said: “Mortgage rates falling and more homes on the market is good news for those who can get on the housing ladder. But for millions of young people, the issue is not the interest rate, but getting a mortgage in the first place.”

Nathan Emerson, chief executive of property professional society Propertymark, said: “With inflation falling earlier this month, the hope is that the Bank of England will have the confidence to cut the base rate further at its next meeting.”

According to Zoopla, annual price changes are as follows:

Northern Ireland, 8.0%

North West, 3.3%

Scotland, 2.8%

North East, 2.5%

Wales, 2.2%

Yorkshire and Humber, 2.1%

West Midlands, 2.0%

East Midlands, 1.0%

East of England, 0.6%

South West, 0.0%

South East, minus 0.1%

London minus 0.2%.