Former steel town ranked the hottest place to buy a property in 2026

Zoopla's analysis ranks markets in Scotland and northern England as having the strongest house price prospects for 2026, with a former steel town topping its list; southern England and London show weaker outlooks amid higher mortgage costs and tax-related uncertainty.

Zoopla has published an analysis identifying UK postal areas with the strongest prospects for house price performance in 2026. The study finds markets in Scotland and northern England generally lead the rankings, while parts of southern England and London show weaker price growth as they adjust to higher mortgage rates and property taxes. The assessment used measures such as housing affordability, typical selling times, the share of properties unsold for over six months, and the prevalence of asking price reductions. A former steel town was placed at the top of Zoopla's list of areas with the strongest prospects. Key findings: - Zoopla based its rankings on affordability, average time to sell, long-standing unsold stock, and asking price reductions. - Scottish markets dominate the top places in the ranking, with only one top-10 location (Wigan) outside Scotland. - In England, Wigan was followed by Liverpool (L postal area) and Stoke-on-Trent (ST postal area) among the strongest prospects. - In Wales, Cardiff (CF) and Newport (NP) were highlighted as having strong outlooks, while Northern Ireland's BT postal area was ranked 25th out of 120. - Zoopla reported that parts of southern England and London were already recording small price falls due to plentiful supply and uncertainty before the 2025 autumn Budget, and that buyers remain price sensitive. - Richard Donnell, executive director at Zoopla, said local market conditions, affordability, demand and selling times matter when making housing decisions in 2026. Summary: The analysis indicates geographic variation in expected house price performance for 2026, with Scotland and northern England showing comparatively stronger prospects and parts of southern England and London weaker. Zoopla noted that individual property characteristics and local demand will influence outcomes. Undetermined at this time.