The UK housing market is making headlines with a surprising twist! Zoopla's latest research reveals that the property market is booming, reaching heights not seen since the financial crisis. But is this a cause for celebration or a sign of underlying issues?
Estate agents across Britain are witnessing a surge in available properties, with an average of 32 homes on their books in early January, a figure reminiscent of 2018. The capital city leads the charge with a remarkable 16% increase in listings compared to the previous year, while the South East follows closely with a 9% rise.
But here's where it gets controversial. Industry experts have differing opinions on what this surge means. Chris Barry, a London-based director, believes the market is gearing up for its best 'normal' year since the financial crisis. However, others argue that the situation is not as rosy as it seems.
A significant portion of the listings are not new; they are properties that were previously on the market in 2025 and are now returning due to post-Budget uncertainty. Richard Donnell from Zoopla suggests that this indicates a strong desire among households to move, but it also highlights the selective nature of buyers in Southern England, who remain price-conscious despite the increased options.
Falling borrowing costs are a silver lining for sellers, according to Mortgage Advisor Richard Davidson. He believes that the recent drop in interest rates is encouraging sellers to list their properties, expecting a favorable market in 2026. Yet, not everyone shares this optimism.
Elliott Culley, a director at a mortgage finance company, cautions that the high number of properties for sale might be misleading. He argues that some of these homes were previously withdrawn from the market in 2025 and are now being relisted, potentially masking the true state of the housing market.
And this is the part most people miss—the demand side of the equation. While the supply of properties is increasing, some experts warn that demand remains weak in most regions, leading to a buildup of unsold stock. Kundan Bhaduri, an entrepreneur and investor, attributes the high figures to this accumulated stock rather than new construction, describing the market as being in a stalemate.
Babek Ismayil, CEO of a homebuying platform, agrees that the market is experiencing a delicate balance. He suggests that while choice has returned, confidence is lagging, creating friction in the market. Michelle Lawson, a financial director, advises vendors to be cautious with pricing, as overpricing could deter potential buyers. She emphasizes the challenges faced by first-time buyers, particularly in the South East, where deposits remain a significant hurdle.
So, is the housing market truly thriving, or is it a bubble waiting to burst? The experts seem divided. What's your take on this intriguing situation? Share your thoughts in the comments below!
