The index shows that prices have increased up to four times faster in more affordable parts of the Midlands, northern England, Scotland and Northern Ireland.

In contrast, smaller price falls of -0.1% were recorded across the South East and South West regions.

Meanwhile, Zoopla’s data found that buyer demand has rebounded since the beginning of the year following a quieter end to 2025.

Activity levels are now broadly in line with early 2024, down 9% although remain below last year’s unusually strong start.

The average five-year fixed mortgage rate (75% LTV) has fallen to 4%, its lowest level since 2022, improving affordability and enabling more households to consider a move.

It also found the total number of homes for sale is 6% higher than last year, with estate agents marketing the largest number of properties seen in eight years.

This increase in supply is easing competition between buyers and placing greater emphasis on realistic pricing and good presentation from sellers.

Zoopla executive director Richard Donnell says: “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.”

“The first few weeks have seen buyer demand fall short of the very strong start to 2025 when buyers were rushing to beat the stamp duty deadline. Market conditions vary across the country and are defined by the level of choice for home buyers.”

“There are more homes for sale and more choice is welcome news for buyers, but sellers need to adapt to a more competitive market where pricing and presentation really matter for serious sellers looking to move in 2026.”

Also commenting, Together managing director of intermediary sales Tanya Elmaz states: “The modest rise in house prices highlights what was ultimately a challenging year for the property market. Growth remained subdued as inflation remained stubbornly high, leading to elevated borrowing costs, and uncertainty around the Budget caused many buyers and sellers to pause their plans.”

“Even so, the outlook for 2026 is more encouraging. With more homes coming onto the market and mortgage rates continuing to fall, we expect activity to pick up pace as confidence returns. The sector should be ready for a rebound as buyers who delayed decisions now seem to be pressing ahead with their original plans.”

Propertymark chief executive Nathan Emerson adds: “Buyer confidence is slowly returning as mortgage rates ease, but this is a very different market compared to the one seen a year ago. Increased choice means buyers are taking more time, negotiating harder, and are far more price-sensitive, particularly in higher-value areas.”

“For sellers, this underlines the importance of realistic pricing and good presentation from the outset. Homes that are priced correctly are still attracting interest and achieving sales, but those that are over-optimistic are more likely to sit on the market.”

“While affordability pressures remain, the fact that buyers are re-engaging shows there is a strong underlying demand to move.”