Confidence returns to Yorkshire property market as buyers regain momentum
Yorkshire’s housing market has started 2026 with renewed energy, as easing mortgage rates and improving affordability draw buyers back in - but realism on pricing remains crucial.
Nationally, the average UK house price rose by 0.3 per cent month-on-month in January, reversing a December dip, while annual growth ticked up to one per cent, according to Nationwide, taking the typical property value to £270,873. Activity is expected to strengthen further in the months ahead as borrowing costs settle and wage growth continues to outpace house price inflation.
For Yorkshire and the Humber, the picture is relatively encouraging. Affordability pressures are less severe than in southern England, with mortgage payments as a share of take-home pay sitting slightly below the long-run average.
That has helped underpin demand, particularly among first-time buyers, as rates on five-year fixed deals have drifted closer to four per cent.
Zoopla’s latest data shows house price growth across Yorkshire ranging from 0.4 per ent to three per cent, reflecting sharp local contrasts. More affordable urban areas with strong transport links, including Leeds, Wakefield and Bradford, are seeing firmer annual growth of two to three per cent, while pricier or more rural markets such as York, Ryedale and parts of the coast are experiencing slower increases as affordability caps momentum.
Estate agents on the ground say 2026 has opened at a faster pace than many expected.
Andrew Wood, director at Cundalls, said: "After a difficult 2025, we’ve seen a busy start to the new year with a spike in viewing numbers and several sales agreed. There is some cautious optimism around and the prospect of another potential interest rate cut if inflation figures continue to head in the right direction.
"Sensible pricing is still key as the market is not what it was two or three years ago." That theme of confidence, tempered by realism, is echoed in West Yorkshire.
Simon Blyth, of Simon Blyth estate agents in Huddersfield, says: “We’ve seen a strong start to the year as pent-up demand has been released. Following the budget and good marketing over the Christmas period, house viewings across our offices increased by about 35 per cent in January.”
Claire Kendall, partner at Richard Kendall, adds: "The Wakefield and Pontefract market has got off to a flying start in 2026 and we are feeling very confident as we swiftly move towards the spring. Whilst we are seeing a similar number of market appraisals in comparison to the first four weeks of 2025, our new instructions are nearly 10 per cent up on the same period.
"We see this trend looking to significantly improve over the coming weeks taking into account how quickly our diaries are getting booked up. Viewings have remained strong through the last 12 months, and this has continued throughout the new year, clearly indicating that we have a strong market with serious buyers and sellers out there. We are very much looking forward to what’s in store."
At the top end of the market, York is standing out. Edward Hartshorne, managing director of Blenkin & Co, said: “The market has been surprisingly buoyant since the start of January, underlining the resilience of bricks-and-mortar across Yorkshire, with the city of York standing out. Strong early-year demand for townhouses has driven a surge in viewings and competitive bidding on properties priced between £1m and £3m.
"A sale has recently been agreed on a blue-chip city centre house, purchased by a buyer swapping country living for city life. While price sensitivity remains a factor, adjusting guide prices on properties that have failed to attract a buyer after three months has proved effective, generating renewed interest and strong offers.
"One case in point is a property near Thirsk which, following a modest price adjustment in January, attracted two competing bids at the guide price, clearly demonstrating the impact of agile pricing.”
However, Yorkshire sellers are operating in a more competitive landscape. The number of homes for sale nationally is about six per cent higher than a year ago, with agents listing the most properties in eight years. Buyers have more choice, meaning over-optimistic pricing can quickly stall a listing.
Meanwhile, average new rents in Yorkshire and the Humber slipped by 1.4 per cent over the past year to £923 per month, as more first-time buyers step out of renting and into homeownership, easing pressure slightly on tenants.
With mortgage rates stabilising and wages still rising, Yorkshire’s relative affordability is proving a key advantage. But 2026 will reward sellers who read their local market closely and price accordingly.