February Sees Minor Dip in UK House Prices Following January Surge

In February 2026, the average asking price for a home in the United Kingdom experienced a slight decrease of £12, settling at £368,019. This follows a significant increase of nearly £10,000 in January, marking the largest rise for that month in Rightmove’s 25 years of house price analysis. The January surge was attributed to a rebound in market confidence after a period of uncertainty surrounding the autumn budget, leading to a strong start for the housing market this year.

The Independent

Colleen Babcock, a property expert at Rightmove, emphasized the importance of contextualizing February's figures alongside January's substantial increase. She noted that many sellers, previously hesitant due to budget uncertainties, entered the market with renewed confidence, which contributed to the January price rise. However, the market remains sensitive to pricing, with many sellers opting to maintain January's gains rather than increase prices further amid high competition.

The Independent

Despite the minor dip, the housing market shows signs of improvement compared to two years ago, with newly listed properties up by 11% and sales agreed up by 9%. Babcock suggested that 2026 could be a favorable year for buyers, as average wages have risen by approximately 17% over the past three years, outpacing property price growth of just 1.5% during the same period.

The Independent

Matt Smith, a mortgage expert at Rightmove, highlighted the positive effects of regulatory changes, such as the Financial Conduct Authority's review of the loan-to-income cap, which has allowed typical buyers to borrow more. Additionally, lenders are increasingly focused on assisting first-time buyers, with new products designed to enhance borrowing capacity. Local agents, including Craig Webster from Tiger Sales & Lettings, noted that sellers are becoming more realistic in pricing, while demand remains resilient, aided by decreasing mortgage rates and competitive lending conditions.

The Independent

Research from property firm Savills indicates that the total value of homes across the UK has reached £9.18 trillion, with a growth of £136 billion in 2025, although this is less than the £268 billion added the previous year. Lucian Cook, head of residential research at Savills, pointed out that the capital appreciation since the end of 2022 is the lowest for a three-year period since 2013. Notably, the North of England and devolved nations, despite comprising only 27% of the total value of UK homes, have contributed 60% of the total growth since 2022, with the North West leading the way with a £63 billion increase in housing stock value.

The Independent

While the market shows signs of recovery, some experts caution that the housing sector's slow response to recent Bank of England base rate cuts and ongoing pressures from rising mortgage costs could hinder further growth. The absence of price growth in London and the South East, coupled with declining levels of house building, adds to the complexity of the current housing landscape. As the spring selling season approaches, stakeholders remain watchful of how these dynamics will unfold.

The Independent

• "Virtually flat prices in February really needs to be viewed alongside what happened in January." — Colleen Babcock, Property Expert at Rightmove

The Independent

• "Sellers are becoming more realistic as competition remains high, but demand remains resilient." — Craig Webster, Managing Director at Tiger Sales & Lettings

The Independent

• "There continues to be a strong focus from lenders on helping first-time buyers." — Matt Smith, Mortgage Expert at Rightmove

The Independent