A new analysis of residential sales has revealed that homebuyer demand in England slipped by -1.6% in Q1 2026.
The study also reveals a clear north-south divide with counties located in the Midlands or north of the country recording positive demand growth while those in the south see demand slip.
eXp UK analysed current buyer demand across each county in England based on the number of homes listed for sale to have already seen an offer agreed, before comparing the current market landscape with the previous quarter as well as the same time last year, to see how the appetite for homeownership has shifted.
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
This most recent change means that the highest level of homebuyer demand in England is now found in the City of 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%).
Head of eXp UK and Europe, Adam Day, comments: “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.”
