February is on track to record the highest number of new home listings in a decade, Zoopla reveals.

The latest house price index found that there are 6% more homes for sale than a year ago, something Zoopla says it expects to rise further in the coming months.

Average mortgage rates for new loans are at their lowest level for four years, due to lower base rates and stronger competition between lenders.

This means that rates on both two-year and five-year fixed deals are now below 4% for the first time since 2022.

Criteria in terms of how mortgage lenders assess affordability have eased over the past year.

Lenders are typically checking that borrowers can afford a higher mortgage rate of 6.5%, which is lower than an 8.5% a year ago.

Zoopla says that 40% of homes currently for sale on the property website are cheaper to buy with a mortgage than the cost of renting locally, based on a 20% deposit.

This is an improvement from 25% last year, which shows that home ownership has become more affordable than in recent years.

In the North East, North West and Scotland over half of homes for sale are cheaper to rent than buying at a 6.5% mortgage ‘stress rate’.

Despite the increase in market activity, house price growth remains subdued at 1.3% growth (12 months to January) compared to a year ago. This compares to 1.8% the previous year.

Northern Ireland is registering the fastest rate of price growth at 8% and across Great Britain, the North West is the strongest-performing region, with prices up 3.3% year-on-year, followed by Scotland (2.8%) and the North East (2.5%).

In contrast, average prices in London are 0.2% lower than a year ago.

The index found that the areas with higher price growth are more affordable and have fewer homes for sale than a year ago, limiting buyer choice and supporting price growth.

Across the rest of the country, price growth is the same or weaker than a year ago.

Southern England remains the softest market, with average prices broadly unchanged over the last 12 months. However, this marks an improvement on the more widespread price falls seen in the second half of 2025.

Zoopla executive director Richard Donnell says: “Despite improved levels of market activity, subdued house price inflation is good news for buyers and sellers and represents a more stable market. More sellers putting their home on the market shows a strong desire to move home.”

“Lower mortgage rates and improved affordability of mortgages means now could very well be the best time to buy a home in recent years, especially for first time buyers with more homes available to buy for less than the cost of renting.”

“We expect continued modest rates of price inflation over 2026 which will support healthy levels of sales with some wide variations across local markets. Sellers need to seek the advice of local agents to get the right strategy for their home.”

Commenting on the latest figures Propertymark chief executive Nathan Emerson adds: “It is encouraging to see renewed confidence in the housing market, with more competitive mortgage rates and improved affordability checks helping more people step onto or move up the housing ladder.”

“After years of cost-of-living pressures and higher interest rates, 2026 is showing signs of greater stability. With inflation dipping down earlier this month, it is hoped the Bank of England may have the confidence to bring the base rate down further when they next meet.”

“At the same time, stronger price growth in parts of the UK outside London reflects changing working patterns and affordability considerations, as more people reassess where they can achieve a good standard of living.

“However, rising house prices are not sustainable without a significant boost to the supply of genuinely affordable homes. Meeting housing delivery targets will be crucial to ensuring long-term affordability and preventing buyers from being priced out of areas seen as more attainable.”

Totally Money chief executive Alastair Douglas also comments: “Falling mortage rates 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 problem isn’t the rate – it’s getting a mortgage in the first place.”

“Deposits are a huge hurdle, and saving enough has never been harder. High rents and the cost of living crisis are making it hard to put money away each month, and with youth unemployment at 16.1% and job vacancies at their lowest since the pandemic, some can’t even get started.”

“And if you’re struggling to find work and renting, it’ll also be harder to build the kind of credit history that lenders want to see.”

“Add a student loan crisis to the mix, with high interest rates and frozen repayment thresholds, and it’s clear that homeownership is becoming a luxury for those who can lean on the bank of mum and dad. The reality is that those from tougher backgrounds might find themselves completely locked out of buying a home.”