Homebuyer demand in England slipped by 1.6% in the first quarter of 2026 and there is a clear north-south divide, research suggests.
Self-employed estate agency brand eXp UK analysed current buyer demand across each county in England based on the number of homes listed for sale on Rightmove with an offer agreed compared with the same time last year.
The latest figures for Q1 2026 show that, across England, overall sales demand stood at 42.4%. This marks a quarterly dip of 1.6% compared to Q4 2025, and an annual drop of 1.0% since this time last year.
Biggest quarterly climbs
The biggest quarterly demand increase has been recorded in Derbyshire, where growth of 0.9% leaves the current level of demand at 45.2%.
This is followed by Lincolnshire (0.7%), Durham (0.7%), Staffordshire (0.6%), and Shropshire (0.5%).
Meanwhile, the biggest quarterly drops were seen in the City of Bristol (-4.6%), City of London (-4.5%), Surrey (-4.1%), Wiltshire (-3.8%), and Hertfordshire (-3.8%).
Annual changes
On an annual basis, the biggest buyer demand increase has been recorded in Rutland which has seen impressive growth of 5.8% to bring the current demand level to 38.8%.
This is followed by Merseyside (3.4%), the East Riding of Yorkshire (2.9%), Derbyshire (2.7%), and Lancashire (2.6%).
Meanwhile, the biggest annual drops were recorded in the City of London (-6.9%), Cambridgeshire (-4.6%), Bedfordshire (-4.5%), Greater London (-4.0%), and Berkshire (-3.9%).
Overall demand
The highest level of homebuyer demand in England was in Bristol (56.4%), Tyne and Wear (53.2%), South Yorkshire (52.3%), Greater Manchester (49.1%), and Merseyside (49.1%).
Buyer appetite is at its weakest in the City of London (14.0%), Isle of Wight (28.4%), and Cornwall (32.0%).
Adam Day, head of eXp UK and Europe, said: “The latest figures highlight an increasingly clear regional divide across England’s housing market. While many southern counties are continuing to face subdued demand as a result of higher price bases, stretched affordability, and greater sensitivity to interest rate movements, markets in the Midlands and the North are proving notably more resilient.
“In these regions, comparatively lower property values mean buyers are less exposed to borrowing cost pressures, helping to sustain transaction levels. In addition, stronger rental yields and ongoing investment and regeneration in key urban centres are supporting both owner-occupier and investor demand. There is also evidence that shifting working patterns and greater flexibility around location are continuing to redistribute housing demand away from traditionally dominant southern markets.
“Taken together, this suggests the current market is not experiencing a uniform slowdown, but rather a rebalancing, where relative affordability, local economic conditions, and changing buyer priorities are playing a more decisive role than at any point in recent years.”
