The average asking price for a home in Britain experienced a marginal decline of £12 in February, settling at £368,019, according to the latest data from property portal Rightmove. This follows a substantial increase of nearly £10,000 in January, which represented the largest January surge in the company's 25-year history of tracking house prices.
A Strong Start to the Year Despite February Dip
Rightmove emphasized that despite the virtually flat prices observed in February, 2026 has witnessed the most robust beginning to a year since 2020. Prices have risen by 2.8% since December, driven primarily by the exceptional January performance. This early-year price growth was heavily concentrated in January as market confidence rebounded following prolonged uncertainty surrounding the autumn budget.
Market Dynamics and Seller Behaviour
Colleen Babcock, a property expert at Rightmove, provided context for the February figures. "The virtually flat prices in February must be viewed in conjunction with January's record increase," she stated. "Many sellers, who had previously held back due to budget uncertainties, entered the market in early 2026 with renewed confidence, fueling that significant January price rise."
Babcock noted that fundamental market conditions remain unchanged. "There is still a plentiful supply of homes for sale, and current buying activity is not as intense as this time last year, when buyers were rushing to beat a stamp duty increase in England," she explained. "Consequently, sellers in February adopted a more cautious approach, consolidating January's gains rather than pushing prices higher in a competitive and price-sensitive market."
Comparative Trends and Affordability Factors
Rightmove's analysis reveals that current market trends appear stronger compared to 2024. The number of newly listed properties is 11% higher than two years ago, while sales agreements are 9% higher than at the same point in 2024.
Matt Smith, a mortgage expert at Rightmove, highlighted improving affordability. "Recent regulatory reviews by the Financial Conduct Authority have enabled typical buyers to borrow more," he said. "Lenders are also focusing strongly on assisting first-time buyers with new products designed to help eligible borrowers access larger sums."
Babcock added, "2026 is shaping up to be a favourable year for buyers. Over the past three years, average wages have increased by approximately 17%, significantly outpacing property price growth of just 1.5% over the same period. More favourable mortgage rates and a competitive lending environment are further enhancing buyer affordability."
Regional Perspectives and Spring Market Outlook
Craig Webster, managing director of Tiger Sales & Lettings in Blackpool, observed, "Sellers are becoming more realistic as competition remains high, but demand persists. For buyers, conditions are improving with declining mortgage rates, competitive lenders, and wage growth exceeding house price growth."
Katie Griffin, director at Sawdye & Harris in Dartmoor, anticipates increased activity. "Spring is traditionally our busiest period, and we expect improved activity if sellers continue to price sensibly. Genuine buyer demand exists; people have been awaiting the right moment and the right property at the right price."
Broader Housing Market Context
Concurrent with Rightmove's report, research from property firm Savills estimates the total value of UK homes now stands at £9.18 trillion. The total housing stock value grew by £136 billion in 2025, though this increase was smaller than the £268 billion added in 2024.
Lucian Cook, head of residential research at Savills, commented, "While the total value of UK housing has continued to edge upwards over the past year, the £336 billion capital appreciation since the end of 2022 is the lowest observed for a three-year period since 2013. This reflects initial price pressures from rising mortgage costs in 2023 and the market's slow response to recent Bank of England base rate cuts."
Cook noted that stagnant price growth in London and the South East, combined with declining housebuilding levels, has constrained aggregate growth. Interestingly, despite accounting for only 27% of the total value of UK homes, the North of England and devolved nations have contributed 60% of total growth since 2022. The North West region has been the top performer, with its housing stock value increasing by £63 billion since 2022.
