Lowest mortgage rates in four years supporting sales and surge in property listings: Zoopla

by Aaron Strutt

Feb 20 2026

Key takeaways from Zoopla data

• Strong property sale numbers are supported by average mortgage rates dropping below 4%.
• 40% of homes for sale are now cheaper to buy with a mortgage than rent.
• Sales activity is healthy, but house price inflation remains subdued at 1.3%.
• House price rises are higher than last year in northern England and Scotland.
• Price falls have moderated in southern England.

What's happening in the housing market right now?

The housing market has started 2026 in notably better shape than many expected. Falling mortgage rates, improved lending conditions, and a surge in new properties coming to market are all creating a more positive environment for buyers and movers alike.

One clear trend in February 2026 Zoopla reports is a surge in the number of sellers bringing their homes to the market. February is on track to record the highest monthly number of new listings in a decade, reflecting improving seller confidence and a strong desire to move home.

There are already 6% more homes for sale than a year ago, and this is expected to rise further in the coming months. This increased supply boosts buyers' choice and will keep house price growth in check over 2026.

Mortgage rates are at their lowest level in four years

The big headline for buyers is that average mortgage rates on both 2-year and 5-year fixed deals have dropped below 4% for the first time since 2022. This is the result of falling base rates and strong competition between lenders — and it's translating directly into improved affordability.

At Trinity Financial, we're seeing lenders ease their affordability stress-testing too. Many are now assessing borrowers against a 6.5% stress rate, down from 8.5% a year ago. In practical terms, this means more people can borrow more — often up to six times single or joint salaries — and that's particularly good news for first-time buyers.

NatWest has just brought down the cost of its fixed rates for borrowers with a range of deposit sizes. The bank’s cheapest two-year fix will be just over 3.60%, and its best five-year fix will be below 3.85%. More lenders are improving their pricing again, and there aren't many rate hikes at the moment. Click here to view our larger mortgage loan best buy table.

40% of homes are now cheaper to buy than to rent

One of the most striking findings from the latest data is that 40% of homes currently for sale in the UK are now cheaper to buy with a mortgage than to rent locally. A year ago, with stricter affordability tests, that figure was just 25%.

House prices remain stable — and that's good news

Annual UK house price growth currently sits at 1.3%, with the average UK home valued at £269,900. Growth is strongest in the North West, Scotland, the North East and Northern Ireland, where affordability is better and stock remains tighter.

In southern England, prices are broadly flat over the past 12 months — an improvement on the modest falls seen in the second half of 2025. Buyers in these areas have more choice and more negotiating room than they've had in some time.

A surge in new listings is boosting buyer choice

February 2026 is on track to record the highest number of new property listings in a decade. There are already 6% more homes for sale compared to a year ago, and that figure is expected to rise further through spring.

More supply means more choice — and for buyers, it also means sellers need to price competitively to secure a sale. If you're buying in 2026, particularly in southern England, you may well find sellers open to negotiation.

What does this mean for you?

Whether you're a first-time buyer, a home mover, or looking to remortgage, the current market presents some genuine opportunities:

• Mortgage rates are the most competitive they've been since 2022, starting at 3.6%.
• Lenders are stress-testing at lower rates, so they are issuing more 5-, 5.5-, and 6-times-salary mortgages.  
• There are more properties to choose from than at any point in the past decade.
• House price growth is modest and steady, reducing the risk of overpaying.

The Trinity Financial team works with a wide range of lenders, including many that offer exclusive rates not available to the public. We can help you understand exactly how much you could borrow, which deals suit your situation, and how to move quickly when you find the right property.

Speak to a Trinity Financial adviser today

The mortgage market moves fast — and the right advice can make a significant difference to the rate and deal you secure. Get in touch with our team to discuss your options.

Call Trinity Financial on 020 7016 0790 to secure a fixed or tracker rate mortgage, book a consultation, or use our appointment calendar

The information contained within was correct at the time of publication but is subject to change.

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Source: Zoopla