13 Jan 2026
- Zoopla predicts average UK house prices to increase by 1.5 per cent in 2026
- Housing markets in Scotland and Northern England have the best prospects for house price growth and sales in 2026
- Scotland's housing market sees nine of the top 10 best prospects across the UK, led by Motherwell
- Wigan rounds out the top ten, with markets in the North West representing six of the 10 best within England
- The North-South Divide has become more entrenched - areas in London and Southern England make up the 10 national markets at the bottom of the rankings where affordability and lots of supply will see house prices under-perform
UNDER EMBARGO UNTIL 00.01 TUESDAY 13 JANUARY, 2026, London: New analysis from Zoopla, one of the UK's leading property websites, reveals that housing markets across Scotland and Northern England have the best prospects for house price growth in 2026.
Markets across Southern England - including London - are set to see lower price growth as they continue to adjust to the dual impacts of higher mortgage rates and higher property taxes. House prices are already posting single digit falls across southern England.
Zoopla has assessed a range of key housing market indicators including the affordability of homes, how quickly homes are selling, how much asking prices are being cut to attract demand and how many homes have been on the market for more than six months. These factors have been collated and ranked across 120 postal areas of the UK to create an overall ranking of the areas with the best prospects for 2026.
The 2025 edition of these rankings was a reliable predictor for house price inflation over the year. While Zoopla's predicts that UK house prices are set to increase by 1.5% there will be a spread in the range of house price inflation across local markets which reflects the demand for and affordability of homes across the country. Sellers and buyers need to consider local market conditions as they plan their moves and make decisions in 2026.
Scotland leads UK rankings
Scotland has the best market conditions and markets in Scotland lead the UK rankings, with just one of the top ten coming outside the country. The Motherwell (ML) postal area takes the top spot, with four other markets in Scotland rounding out the top nine slots, with Wigan in North West England representing the rest of the UK. These markets do not have lots of unsold stock meaning fewer asking price reductions and faster price growth.
The Falkirk and Kirkcaldy postal areas record the fastest house price growth in the top ten (4.2% each), only trailing Galashiels (4.7% and ranked 44) in the entirety of Scotland. These areas compare to the wider Scottish average of 2.8%, reflecting slower growth in areas such as Aberdeen (0.5%) and Dumfries (1.3%).
Markets in Northern England see the best prospects for price growth in 2026
Looking southward, the English market with the best prospects for 2026 is Wigan, closely followed by Liverpool and Stoke-on-Trent. Markets in the North West take up six out of 10 spots in the top ten, while markets beyond the North and Midlands don't feature.
The list comprises towns and cities where homes remain affordable or accessible to large employment centres meaning scope for more sales and price inflation. House prices across these areas are below the UK average and there remains a general scarcity of homes for sale.
Housing markets across Southern England and London make up the list of the areas at the bottom of the rankings across the UK. This is largely down to affordability pressures resulting from higher house prices and the fact the market is still adjusting to higher mortgage rates. These markets have also seen a greater increase in homes for sale, boosting buyer choice, and with higher stamp duty costs since April 2025. This explains the modest decline in average prices over the last year.
Areas across London including West Central, West, East Central, South West and North West London sit at the bottom of the rankings, reflecting both their combined average price of £711,140 and longer times to sell - with West Central London in particular seeing a time to sell over twice the UK average of 39 days.
House prices are already posting small falls across southern England due to lots of supply and uncertainty over taxes and the autumn Budget. Speculation over a new annual tax on homes over £500,000 hit activity across much of the south of England and this risk has now been lifted. We expect more activity in 2026 but house price growth is set to remain low between 0% and 1% in 2026 as the affordability of housing continues to reset. There is demand for homes but buyers remain price sensitive.
Value for money is slowly returning to the London property market after a decade of below-average growth. Although many London areas sit at the bottom of the rankings, prospects in London are much improved on those over recent years and there are some opportunities for canny buyers seeking value for money.
Mixed fortunes in coastal Wales
Cardiff and Newport's property markets see the best prospects for 2026, reflected by factors such as their time to sell being 9 days lower than average. Despite being in a similar coastal area, Swansea doesn't see the same strength of prospects, with the highest proportion of homes with a cut to the asking price of above 5%.
Northern Ireland
Northern Ireland has been the hottest market for house price inflation over the last year with average prices up 6.5%. House prices have rebounded off a low base after lagging behind the rest of the UK over the last decade. The resolution of trading arrangements post-Brexit is a key factor supporting increased housing demand. The BT postal area covering Northern Ireland is ranked number 25 out of 120.
House price inflation in 2025 vs prospect rankings
The 2025 edition of these rankings were a good predictor of price inflation over the year. While average UK house prices increased 1.5% in the year to November, the spread of growth was from 3% in the top ranked markets to a 1.2% fall in the bottom ranked markets. The same pattern is expected in 2026.
Richard Donnell, Executive Director at Zoopla comments: “Whether you're buying or selling, local housing market conditions matter more than ever when making housing decisions in 2026. Basing decisions on the value of a home, affordability, demand and selling times in the local area will help sellers and buyers move with greater confidence.
“Our analysis highlights the areas with the strongest potential for continued growth in sales activity and above-average house price rises in 2026. While prospects are strongest in Scotland and Northern England, opportunities exist across the UK where demand and affordability remain well aligned. Price growth is expected to be slower in lower-ranked markets, particularly across parts of Southern England and London, although improving affordability means the outlook in London is more positive than in recent years.”
The characteristics of individual homes matters too and how much demand there exists locally for different types of homes which might perform better than the local market. It is important for serious sellers, speaking to local agents to get tailored insight into local conditions and how to price and market their home for a successful sale in 2026.”
Kevin Shaw, National Sales Managing Director, LRG, said: “This report captures the north - south story well. The point isn't that one part of England is 'winning' - it's that markets move to different rhythms.
“Many northern markets haven't been on the same roller coaster as parts of the south. Property prices often rise in a steadier way in the good years so they tend to fall less when sentiment turns. The temperature is generally more consistent.
“By contrast, the south can overheat - and it can also catch a cold. Higher values can mean greater sensitivity to mortgage rates, affordability and confidence. That can translate into a longer adjustment period, even while demand for the right homes remains resilient.”
-ENDS-
Notes to Editors
- The following four data points were assembled for all 120 postal areas for the most recent period available - typically November 2025 for house prices and house price inflation and Q4 2025. Each factor was ranked across the 120 postal areas and then an average rank was calculated across the four data points to establish the overall ranking.
- Affordability - the income needed to buy an average-priced home
- Time to sell - the speed at which homes are selling
- Aged stock - % homes that have been on the market for over 6 months
- Asking price reductions - % homes that have had a price reduction of >5%
At the top of the list are affordable areas, where homes are selling quickly without the need for asking price cuts and without an above-average amount of unsold stock. At the bottom are areas where affordability and weaker demand are likely to hold back price rises.
Media enquiries:
Elodie Lunt
VCCP Roar on behalf of Zoopla
Phone: +44 7707 165091
Email: zoopla@vccproar.com
About Zoopla
Zoopla is a leading UK property website and trusted consumer brand, empowering movers to make better property decisions with over nine million monthly users generating over one billion annual property searches. Zoopla is more than a property portal. Over 5m million homeowners are subscribers, tracking their property values and providing a pipeline of movers for Zoopla's customers. The business is investing in leveraging its scale and reach to build new, AI-driven experiences that engage movers and unlock value and a strong ROI for customers.