Four in ten UK homes are now cheaper to buy with a mortgage than to rent, marking a significant shift in housing affordability that is reshaping options for tenants considering homeownership, according to the latest House Price Index from Zoopla.
The proportion has risen from just 25 percent a year ago, driven by falling mortgage rates and eased lending criteria. In some regions, including the North East and Scotland, more than half of homes now cost less to buy than rent on a monthly basis.
February records decade-high new listings
This February is on track to record the highest number of new home listings of any February in the past decade, reflecting improved confidence among sellers and a strong desire for households to move. There are currently six percent more homes for sale than a year ago, a figure Zoopla expects to rise further in the coming months.
For landlords, the increase in stock provides context for the softening rental demand seen in recent months, as some tenants take advantage of improved conditions to become first-time buyers.
Mortgage rates at four-year low
Average mortgage rates for new loans have reached their lowest level in four years, thanks to lower base rates and stronger competition between lenders. Two-year and five-year fixed deals are now available below four percent for the first time since 2022.
Buyers with larger deposits have access to some of the best deals seen in several years, which is supporting increased sales activity. This follows the recent ONS data showing UK house prices up 2.4 percent annually.
Regional price growth varies widely
House prices have increased by 1.3 percent over the past 12 months to the end of January, with notable regional variation. London prices are down 0.2 percent year-on-year, while the North West has seen growth of 3.3 percent. Northern Ireland has registered an eight percent annual increase.
Nathan Emerson, chief executive of Propertymark, said it was encouraging to see renewed confidence in the housing market.
“After years of cost-of-living pressures and higher interest rates, 2026 is showing signs of greater stability,” Emerson said. “With inflation dipping down earlier this month, it is hoped the Bank of England may have the confidence to bring the base rate down further when they next meet.”
He added that stronger price growth outside London reflected changing working patterns and affordability considerations, as more people reassess where they can achieve a good standard of living.
However, Emerson warned that rising house prices are not sustainable without a significant boost to supply. “Meeting housing delivery targets will be crucial to ensuring long-term affordability and preventing buyers from being priced out of areas seen as more attainable,” he said.
For landlords in areas where buying has become more attractive than renting, the data suggests tenant pools may shrink as more renters transition to ownership. Those with properties in the North East and Scotland, where over half of homes are now cheaper to buy, may see this effect most acutely.
Further details are available in Zoopla’s House Price Index report.
Editor’s view
The shift toward buying over renting in many areas marks a meaningful change for landlords who have relied on strong tenant demand. For investors, understanding local dynamics will be essential – what works in Glasgow may not apply in London. Those reviewing their portfolios should factor in regional mortgage affordability when assessing long-term rental viability.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 25 February 2026
Sources: Zoopla House Price Index, Propertymark
Related reading: Rental demand cools as cheaper mortgages draw tenants back to buying
