Zoopla has recorded its highest number of new homes listings in a decade in February, and says up to half of the homes available now cost less to buy than rent.
The monthly house price index from the online property portal reveals that mortgage payments on 40% of UK homes cost less than average rents in the area, rising to more than half of available properties in regions including the North East and North West of England and Scotland. A year ago, just 25% of homes cost less to buy than rent.
The reduced costs of buying a home are due to improving mortgage rates and easing lending criteria, Zoopla explained.
“Average mortgage rates for new loans are at their lowest level for four years. This is thanks to lower base rates and stronger competition between lenders.
“As such, buyers currently have access to some of the best deals seen for several years, particularly those with larger deposits, and this is supporting increased sales activity.”
The increase in the number of homes coming to market reflects improved confidence “and a strong desire for many households to move,” Zoopla said.
Data gathered by the company for the first two weeks in February and compared to the same period in previous years suggests the month is on track to record the highest number of new listings in February for a decade.
There are currently 6% more homes for sale now than a year ago, which Zoopla expects to rise further in the coming months. “Not only will this increase choice for buyers but it will help to keep prices in check over the remainder of the year,” Zoopla said.
Executive director Richard Donnell explained: “Despite improved levels of market activity, subdued house price inflation is good news for buyers and sellers and represents a more stable market.”
And, he added, lower mortgage rates and improve affordability lend themselves to it being the best time to buy a home in recent years, particularly for first time buyers.
Nathan Emerson, CEO of Propertymark, said it is encouraging to see renewed confidence in the market. “After years of cost-of-living pressures and higher interest rates, 2026 is showing signs of greater stability,” he said.
“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, Emerson warned that without a significant boost to the supply of genuinely affordable homes, buyers will continue to be priced out of areas seen as more attainable.
