But house prices have lagged, with the typical property now worth £270,300, Zoopla said, 1.1% more than the same point in 2024.

That is less than the 1.9% house price growth in 2024 and much less than the 3.8% annual average over the past 10 years.

The property platform’s latest House Price Index also predicted that property values were set to rise by 1.5% in 2026, with 1.18 million housing transactions.

This is more a more cautious prediction than Rightmove, which expects a 2026 house price rise of 2%, and Jackson-Stops, which expects growth of 2-3%.

House prices are rising quickest in the North West (2.9%) and Northern Ireland (6.7%), but falling across southern parts of England by up to 0.6%.

Zoopla said that first-time buyers made up 39% of sales in 2025.

Zoopla executive director Richard Donnell said: “We expect a stronger 2026 as buyers return to the market, with more homes for sale.

“Demand remains strong, but affordability constraints persist.

“For those buying their first home or looking to move up the ladder, house price growth will keep prices in check.”