UK's Zoopla says house buyer demand has risen since November budget

LONDON, Jan 29 (Reuters) -

Britain's housing market has ⁠gathered speed ‌since the start of the ⁠year after a lull in the run-up to finance minister Rachel Reeves November budget, ‍property website Zoopla said on Thursday.

Zoopla said buyer demand in early 2026 was ‍at a similar level to early 2024 though around 9% below levels early ⁠last year when many buyers were seeking to complete transactions before a temporary tax break for purchases expired.

"After a weak end to 2025, home buyer ​confidence is returning as mortgage rates ease and those who delayed decisions last year return to the market," Zoopla Executive Director Richard Donnell said.

Average interest rates on a mortgage with an interest rate fixed ‍for five years and a 75% loan to value had fallen ‌to the lowest since 2022, Zoopla said.

House prices rose by an average of 1.2% over the past ‌12 months, but with wide regional variations and the biggest increases in cheaper parts of the United Kingdom, Zoopla said.

There have been other ‌signs of a post-budget recovery in the housing market. Property website Rightmove said asking ​prices for homes rose by the most on record for the Christmas and New Year period and the Royal Institution of Chartered Surveyors saw signs of ⁠improving expectations in December.

Data from beyond the ‍housing market, including January purchasing managers' data for businesses and official retail sales numbers for December have shown ​stronger than expected outturns, have raised the prospect ⁠of faster-than-expected economic growth in early 2026.

While Reeves announced 26 billion pounds ($36 billion) of tax rises in her November budget, most are deferred. ($1 = 0.7248 pounds) (Reporting by David Milliken Editing by William Schomberg)