The UK housing market has started 2026 with the highest number of homes for sale in more than eight years, latest data from Zoopla reveals.
New analysis from the portal shows the average estate agent had 32 homes for sale in early January, the highest level at the start of the year since 2018.
Around a third of these properties were previously listed in 2025 and have returned to the market after uncertainty in the final quarter of last year stalled activity.
The increase in supply is most pronounced in southern England. Listings in London are up 16% year on year, followed by a 9% rise in the South East, reflecting the impact of Budget-related uncertainty that left more homes carrying over into 2026.
GREATER CHOICE
In these regions, greater choice is helping to restrain price inflation, with values down by up to 1% over the past year.
Elsewhere, supply levels are broadly unchanged compared with a year ago, creating tighter conditions that are supporting stronger price growth, with house prices up by as much as 3% in the North West.
Buyer demand has rebounded strongly since Christmas, tracking in line with the early weeks of 2024 but around 10% below the unusually strong start to 2025.
Demand at the start of this year remains more than 20% higher than in early 2023 and pre-pandemic levels, pointing to a more sustainable uplift in activity.
STRONG REBOUND
Richard Donnell (main picture, inset) Executive Director at Zoopla, says: “After a sluggish end to 2025 it is positive to see a strong rebound in buyer demand over the first weeks of the year across all parts of the country.
“Growing numbers of homes for sale is evidence of a strong underlying appetite to move home for many households. Market conditions vary widely across the UK, and sellers looking to move home in 2026 need to take this into account when planning their home move.
“Across much of southern England, there is a much greater choice of homes for sale. Buyers are price-sensitive and have more choice, so achieving the best result depends on setting a competitive asking price and attracting early interest.
“Homes priced too high often take longer to sell and at the risk of achieving a lower price. It is important that homeowners price carefully and seek the advice of agents to plan the right strategy for their home sale.”
REALISTIC PRICING
And he adds: “Across the rest of the country there is a degree of scarcity, but sellers need to remain realistic over pricing.
“The market is stable rather than booming. Buyers are active but careful, which means pricing correctly from the outset is crucial.
“Homes that are well-presented and realistically priced continue to sell, while those priced optimistically will take longer and may need price reductions to attract interest.”
