Scotland and Northern England are growth areas in 2026

Housing markets across Scotland and Northern England have the best prospects for house price growth in 2026, Zoopla has predicted.

Hotspots include Falkirk and Kirkcaldy, where prices are expected to increase by 4.2% year-on-year in both areas.

In the North of England Oldham and Carlisle are growth areas, with predicted inflation of 4.4% and 4.0%.

Alex Rose, commercial director at Zoopla, said: “This data brings into sharp focus that there isn’t a one-speed national property market, with conditions varying significantly across the country.

“In places like Scotland and the North, sellers are benefiting from strong demand and faster sales, while in many Southern markets, success is more dependent on setting a competitive asking price to attract increasingly selective buyers.

“Agents who can clearly explain where their local market sits within this national picture and tailor their strategy accordingly, have a real opportunity to get ahead of the competition, win trust and instructions, and ultimately grow their business in 2026.”

Areas across London including West Central, West, East Central, South West and North West London are viewed as the areas with the poorest prospects.

In West Central London it takes double the UK average of 39 days to sell a property.

Despite this negativity, prospects have improved in the capital.

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.”