BLOGS

The UK housing market is experiencing a notable surge in seller activity as 2026 unfolds. After a quieter end to 2025, vendors are returning in force, with new sales listings climbing sharply in the opening months of the year. This inventory boost is reshaping market dynamics and offering buyers more choice than they've seen in recent years.

A flood of fresh stock

REalyse data shows new listings jumped by over 80% between December 2025 and January 2026, with momentum continuing into February when approximately 142,000 new properties came to market—a further 1.9% increase on the previous month. By March, the figure had climbed to nearly 190,000 new listings, marking the strongest start to a selling season in several years.

Active inventory levels have responded accordingly. February 2026 saw over 90,500 active sales listings across the UK, representing a 31% increase from January. This expansion of choice is welcome news for buyers who have faced constrained supply in recent years, though it also means sellers must work harder to stand out in a more competitive environment.

Properties are moving at a reasonable pace, with average days on market sitting between 24 and 28 days depending on region. Scotland and Wales show the fastest turnover at around 24 days, while London properties take slightly longer at 28 days on average—reflecting the capital's higher price points and more considered buyer decisions.

Regional price growth tells different stories

While national asking prices have edged up approximately 0.8% according to major portal indices, the regional picture reveals stark contrasts. Scotland is leading the UK with year-on-year asking price growth of 9%, with average asking prices now sitting at £298,000. Yorkshire and The Humber follows with 4.8% annual growth, while Wales shows a healthy 3.9% increase.

Northern Ireland has also demonstrated strong momentum, with industry reports suggesting price growth exceeding 6% over the past year. The region's relative affordability compared to mainland GB continues to attract both local buyers and investors seeking better value.

The Midlands are showing resilience, with the East Midlands up 2.9% and West Midlands gaining 2.4% year-on-year. The North West (+1.2%) and East of England (+0.6%) are posting more modest but positive growth.

However, southern England presents a different picture. London asking prices have dipped 2% annually, the South East is down 2.6%, and the South West has seen the sharpest correction at 4.2%. These markets, which experienced the strongest gains during the pandemic boom, are now undergoing a period of price normalisation as affordability constraints bite and the cost of living remains elevated.

What's driving the listings surge?

Several factors are combining to encourage sellers back into the market. Expectations of Bank of England rate decisions are influencing timing, with many vendors keen to transact before potential market shifts. The stabilisation of mortgage rates, though still elevated by pre-2022 standards, has restored a degree of predictability that both buyers and sellers need to commit to transactions.

For buy-to-let landlords, changing tax treatment and regulatory pressures are prompting some to exit the sector, adding to residential sales stock. REalyse data on local planning pipelines can help identify areas where this landlord exit trend is most pronounced, offering insights for investors looking to acquire portfolios or individual assets.

Estate agents report strong activity at market appraisals, with many homeowners who delayed selling during the uncertainty of 2024 and early 2025 now feeling confident enough to make their move. The improved stock levels should help unlock chains that had been stalled by a lack of suitable onward properties.

Implications for buyers, sellers and investors

For buyers, the increased inventory represents a welcome shift. More choice means less pressure to make hasty decisions, and the softening of prices in southern regions may open opportunities that were previously out of reach. However, competition remains strong for well-priced properties in desirable locations, with REalyse comparables data showing that realistically priced homes still achieve asking price or close to it within the first few weeks.

Sellers entering the market now face a more competitive environment. Accurate pricing is essential—REalyse analysis of asking-to-achieved price discounts can help vendors understand local market dynamics and set expectations appropriately. In regions where prices are softening, overpricing carries a greater risk of extended marketing periods and eventual reductions.

For investors, the regional disparities present opportunities. Scotland's strong performance, combined with attractive gross yields in key cities like Glasgow and Edinburgh, makes it worthy of closer analysis. Northern markets in England, where price growth is positive and entry points are lower, may also offer compelling risk-adjusted returns compared to the premium southern markets.

Outlook for spring 2026

The spring market is shaping up to be the most active in several years. With listings volumes running well ahead of 2025 levels and buyer demand remaining solid if selective, transaction volumes should follow suit. Price growth is likely to remain modest nationally, masking continued regional divergence.

Buyers and investors would do well to focus on local market intelligence rather than national headlines. Tools like REalyse can provide granular insights into specific postcodes and property types, helping identify where value remains and where the market may be overheating. As always in UK property, location matters more than ever.