Property market bouncing back
The UK housing market delivered its strongest performance in three years during 2025, with 1.2 million homes sold — 9% more than the previous year. According to Zoopla's latest House Price Index, that puts sales back in line with the 10-year average and marks a significant recovery from the subdued activity of recent years.
The driving force? First-time buyers, who accounted for 39% of all sales and saw their numbers rise by 20% compared to 2024. They're now the largest single group of home buyers, ahead of existing homeowners using mortgages, cash buyers, and investors.
What's Driving the Recovery?
Two main factors have supported increased activity: stable mortgage rates and stronger household income growth. After the volatility of 2022 and 2023, when rates spiked and affordability tightened sharply, the market has found steadier ground.
Improvements in mortgage availability and slightly relaxed affordability criteria have made it easier for first-time buyers to secure lending. While they can borrow more, that doesn't necessarily mean they're buying more expensive homes. In regional markets, first-time buyers are looking to spend up to 5% more than a year ago. In London, however, they're targeting homes that are 3% cheaper, reflecting higher stamp duty costs and stretched affordability.
Prices Rose, But Slowly
Average UK house prices now stand at £270,300, up 1.1% year-on-year. That's lower than the 1.9% increase recorded in 2024 and well below the 3.8% long-term average.
The market remains locked in a north-south divide. House prices are rising fastest in the North West (2.9%) and Northern Ireland (6.7%), while prices are falling across southern regions of England and by up to 0.6% in London, where housing costs and stamp duty are highest.
The Budget Effect
Activity slowed noticeably in the final months of 2025 as buyers paused ahead of the Autumn Budget. Many moving decisions were put on hold while households waited to see what changes might affect property taxes, stamp duty, or lending conditions.
Now that uncertainty has lifted, there's expected to be a stronger-than-usual start to 2026 as pent-up demand is released and buyers return to the market.
What to Expect in 2026
Zoopla forecasts average UK house prices to rise by 1.5% over 2026, with around 1.18 million sales expected. The north-south divide is likely to continue, with prices rising over 2.5% across the Midlands, northern England, Scotland, and Northern Ireland, while southern England sees more modest growth or even slight declines in some areas.
Between 2027 and 2029, prices are projected to grow at an average of 2.1% per year as affordability continues to reset and the number of transactions stabilises.
The Importance of First-Time Buyers
First-time buyers don't just matter for headline statistics — they drive the entire market. When they can access the property ladder, it creates momentum throughout the system, allowing chains to form and transactions to progress.
With rental costs at record highs and limited rental supply, buying is increasingly the more affordable option for many households — provided they can pass affordability checks and secure a mortgage. The recent easing of lending criteria is helping more people make that leap.
For 2026, the key will be maintaining that momentum while keeping pricing realistic, particularly in southern England where affordability remains most stretched.
Thinking of Buying or Selling in Wynyard?
If you’re looking for guidance on Wynyard’s property market, our team is here to help. No one can predict the future with certainty, but at Anthony Jones Properties, we’re committed to helping you make the best decisions.
For expert advice, call us today on 01740 807107.
