LONDON, Jan 29 (Reuters) – Britain’s housing market has gathered speed since the start of the year after a lull in the run-up to finance minister Rachel Reeves November budget, property website Zoopla said on Thursday.<\/p>\n
Zoopla said buyer demand in early 2026 was at a similar level to early 2024 though around 9% below levels early last year when many buyers were seeking to complete transactions before a temporary tax break for purchases expired.<\/p>\n
Sign up here.<\/a><\/p>\n “After a weak end to 2025, home buyer confidence is returning as mortgage rates ease and those who delayed decisions last year return to the market,” Zoopla Executive Director Richard Donnell said.<\/p>\n Average interest rates on a mortgage with an interest rate fixed for five years and a 75% loan to value had fallen to the lowest since 2022, Zoopla said.<\/p>\n House prices rose by an average of 1.2% over the past 12 months, but with wide regional variations and the biggest increases in cheaper parts of the United Kingdom, Zoopla said.<\/p>\n There have been other signs of a post-budget recovery in the housing market. Property website Rightmove said asking prices<\/a> for homes rose by the most on record for the Christmas and New Year period and the Royal Institution of Chartered Surveyors saw signs<\/a> of improving expectations in December.Data from beyond the housing market, including January purchasing managers’ data<\/a> for businesses and official retail sales<\/a> numbers for December have shown stronger than expected outturns, have raised the prospect of faster-than-expected economic growth in early 2026.<\/p>\n While Reeves announced 26 billion pounds ($36 billion) of tax rises in her November budget, most are deferred.<\/p>\n ($1 = 0.7248 pounds)<\/p>\n Reporting by David Milliken Our Standards: The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n
\nEditing by William Schomberg<\/p>\n