According to Zoopla’s House Price Index, the average UK house price stood at £269,900 at the end of last year, up £3,200.
The report noted that there was a North/South divide, with the North West of England recording a 3.5% increase in average prices over the year, followed by a 2.9% increase in Scotland.
Northern Ireland’s house prices rose by 7.6% over the course of the year, but were “coming off a low base”.
London’s house prices contracted by 0.7% over the period, which was attributed to affordability pressures, higher stamp duty costs and a greater choice of homes for sale.
Zoopla added that the South East and South West experienced a smaller decline of 0.1% in 2025.
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The report said 2025 saw the highest number of sales completed since the pandemic, coming to 1.2 million.
Zoopla noted that mortgage rates have “stabilised”, with average mortgage rates coming to around 4% in December.
It added that the mortgage market was “very competitive with more attractive rates for homebuyers, especially for those with larger deposits”.
Households can borrow up to 20% more with the same income and mortgage rate than a year ago, which is supporting more homemovers and higher prices where affordability and asking prices allow, the firm said.
Buyer interest strong in Jan with 2026 outlook expected to be healthy
Zoopla said the housing market had seen a “strong seasonal increase in buyer interest” over January.
The report said many would-be buyers had delayed moving decisions last year due to Budget uncertainty, but confidence was returning.
Buyer demand is 9% down on last year, but Zoopla said 2025 had seen a “busy” start to the year as people tried to get ahead of the end of stamp duty relief in April.
There has also been an increase in newly listed homes for sale and sales being agreed, but they are below the previous year’s figures.
The total number of homes for sale is 6% higher than last year and the average estate agent is currently marketing 34 properties, the highest level seen in eight years.
Zoopla said: “More homes for sale means more buyers in the market. This shows the desire to move home remains, but sellers must factor in local market conditions as they plan their move. Speak to local agents to discuss how to price your home to attract good levels of buyer interest.
“We expect current trends in market activity to continue over the early part of the year, with… healthy demand for homes that are well-priced.”
