Homebuyer demand across England edged down in the first quarter of 2026 with new data pointing to a growing regional divide as northern and Midlands markets outperform the South.
Research from eXp UK shows that 42.4% of homes listed for sale had secured a buyer in Q1, down -1.6% on the previous quarter and -1.0% year-on-year.
The figures suggest a softening in overall demand but mask a clear shift in market dynamics, with affordability continuing to reshape where buyers are active.
Counties across the Midlands and North recorded the strongest quarterly gains. Derbyshire led the way, with demand up 0.9% to 45.2%, followed by Lincolnshire and Durham (both +0.7%), Staffordshire (+0.6%) and Shropshire (+0.5%).
ANNUAL PATTERN
In contrast, southern markets saw the sharpest declines. The City of Bristol (-4.6%), City of London (-4.5%), Surrey (-4.1%), Wiltshire (-3.8%) and Hertfordshire (-3.8%) all recorded notable drops over the quarter.
Rutland posted the strongest growth, up 5.8%, with gains also seen across Merseyside, the East Riding of Yorkshire, Derbyshire and Lancashire. Meanwhile, demand fell most sharply in the City of London (-6.9%), Cambridgeshire (-4.6%), Bedfordshire (-4.5%), Greater London (-4.0%) and Berkshire (-3.9%).
Despite the quarterly slowdown, some markets continue to see strong buyer activity. The City of Bristol (56.4%), Tyne and Wear (53.2%) and South Yorkshire (52.3%) currently top the table for demand, while the City of London (14.0%), Isle of Wight (28.4%) and Cornwall (32.0%) rank among the weakest.
NORTH SOUTH DIVIDE
Adam Day (main picture, inset), Head of eXp UK and Europe, says: “The latest figures highlight an increasingly clear regional divide across England’s housing market.
“While many southern counties are continuing to face subdued demand as a result of higher price bases, stretched affordability, and greater sensitivity to interest rate movements, markets in the Midlands and the North are proving notably more resilient.
“In these regions, comparatively lower property values mean buyers are less exposed to borrowing cost pressures, helping to sustain transaction levels… Taken together, this suggests the current market is not experiencing a uniform slowdown, but rather a rebalancing.”
