LONDON, Jan 29 (Reuters) – Britain’s housing market has gathered speed since the start of the year after a lull in the run-up to finance minister Rachel Reeves November budget, property website Zoopla said on Thursday.
Zoopla said buyer demand in early 2026 was at a similar level to early 2024 though around 9% below levels early last year when many buyers were seeking to complete transactions before a temporary tax break for purchases expired.
“After a weak end to 2025, home buyer confidence is returning as mortgage rates ease and those who delayed decisions last year return to the market,” Zoopla Executive Director Richard Donnell said.
Average interest rates on a mortgage with an interest rate fixed for five years and a 75% loan to value had fallen to the lowest since 2022, Zoopla said.
House prices rose by an average of 1.2% over the past 12 months, but with wide regional variations and the biggest increases in cheaper parts of the United Kingdom, Zoopla said.
There have been other signs of a post-budget recovery in the housing market. Property website Rightmove said asking prices for homes rose by the most on record for the Christmas and New Year period and the Royal Institution of Chartered Surveyors saw signs of improving expectations in December.
Data from beyond the housing market, including January purchasing managers’ data for businesses and official retail sales numbers for December have shown stronger than expected outturns, have raised the prospect of faster-than-expected economic growth in early 2026.
While Reeves announced 26 billion pounds ($36 billion) of tax rises in her November budget, most are deferred.
($1 = 0.7248 pounds)
(Reporting by David MillikenEditing by William Schomberg)
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