UK locations with the strongest property market prospects for 2026

Zoopla predicts housing markets in Scotland and northern England have the strongest prospects for house price growth in 2026, while southern England and London are expected to see weaker growth due to higher mortgage rates and property tax effects.

Zoopla predicts housing markets in Scotland and northern England have the strongest prospects for house price growth in 2026. It says markets across southern England, including London, are expected to see weaker price growth as they adjust to higher mortgage rates and property taxes. The website assessed indicators such as affordability, time to sell, the number of homes unsold for more than six months, and asking price reductions. Areas near the top of the rankings tended to have homes selling quickly and with fewer asking-price cuts. Key findings: - Zoopla's top 10 is dominated by Scottish postal areas; nine of the top ten are in Scotland and one, Wigan (WN), is in the North West of England. - The top-ranked postal areas include ML (Motherwell, £134,700), G (Glasgow, £163,600) and EH (Edinburgh, £251,500). - Looking at England-only rankings, Wigan was followed by the Liverpool (L) and Stoke-on-Trent (ST) postal areas among the strongest prospects. - In Wales, Cardiff (CF) and Newport (NP) ranked highest for 2026 prospects, and Zoopla described Northern Ireland (BT) as having the strongest recent price inflation, placing it 25th out of 120. - Zoopla noted that the characteristics of individual homes and local demand for different property types can affect how specific properties perform in their markets. Summary: The analysis points to regional divergence in the UK housing outlook, with stronger prospects in Scotland and parts of northern England and slower price growth across much of southern England and London. Zoopla says market activity is expected to pick up but that buyers remain price sensitive, and local conditions will continue to influence outcomes.