After a striking start to the year, fresh data point to a shift in momentum
UK house prices remained virtually unchanged in February after posting their strongest January increase since 2015, according to property platform Rightmove’s latest data released Monday.
The average price of newly listed homes edged down to £368,019 in February from £368,031 in January, defying the typical 0.8% rise usually seen during the month. January’s 2.8% increase from December’s £358,138 marked the largest monthly rise for any January on record and the biggest jump since June 2015.
“Emphasising how large January’s price increase was, the first two months of 2026 combined are still the strongest start to a year for prices since 2020,” Rightmove noted.
The property platform attributed February’s stagnation to market fundamentals stabilising after confidence returned following prolonged uncertainty surrounding the autumn Budget.
Colleen Babcock, Rightmove’s property expert, said that “many sellers, some of whom had been holding back because of the Budget, came to market in early 2026 with renewed confidence, which helped to drive that bumper January price rise.”
Current market conditions favour buyers, with home availability reaching its highest level in 11 years for this time of year. The average two-year UK mortgage rate stands at 4.28%, down from 4.96% year on year, marking the lowest level since September 2022.
Jeremy Leaf, a north London estate agent and former RICS residential chairman, pointed to a balanced market. “When the increase in demand just about matches the increase in supply, the result is stalemate,” he said, adding that price stability combined with lower mortgage costs is supporting demand, particularly from first-time buyers.
Variations are apparent
Regional variations were evident in the data. Excluding inner London, first-time buyer prices averaged £226,050 in February, down 0.4% annually. Second-steppers’ properties averaged £343,603, up 0.8% year on year, while top-of-the-ladder homes averaged £658,658, down 0.2% annually.
Katie Griffin, director of Dartmoor estate agency Sawdye & Harris, said sellers were taking a more measured approach. “We are definitely seeing sellers being more realistic with their pricing this February compared to the optimism we saw in January,” she said.
Tomer Aboody, director of specialist lender MT Finance, suggested government intervention may be necessary. “Lower mortgage rates will help but may not be enough on their own,” he said, calling for stamp duty concessions or first-time buyer assistance to boost transaction levels meaningfully.
