Across Britain, the average asking price for homes coming onto the market experienced a marginal decline in February, dropping by just £12 to reach £368,019. This slight decrease follows an extraordinary surge of nearly £10,000 recorded in January, according to comprehensive data released by the prominent property website Rightmove.
January's Record-Breaking Performance
The substantial January increase, which saw prices jump by £9,893, represented the largest rise for that particular month throughout Rightmove's entire twenty-five-year history of house price analysis. Despite February's near-stagnation, the robust commencement of 2026 has resulted in the strongest opening for asking prices witnessed since 2020, with an impressive 2.8 per cent increase observed since December.
Rightmove attributes this early-year growth primarily to a significant rebound in market confidence following a prolonged period of uncertainty surrounding the autumn budget. Colleen Babcock, a property expert at Rightmove, emphasised the necessity of viewing February's figures within their proper context. "Virtually flat prices in February really need to be viewed alongside what happened in January," she explained comprehensively.
Market Dynamics and Seller Behaviour
"After the prolonged uncertainty in the run-up to the late November budget, plus the usual Christmas slowdown, we saw activity pick up again from Boxing Day," Ms Babcock added. "Many sellers, some of whom had been holding back specifically because of the budget, came to market in early 2026 with renewed confidence, which helped to drive that bumper January price rise."
However, she cautioned that fundamental market conditions have not substantially changed. "There are still lots of homes available for sale, and buying activity isn't as strong as this time last year, when many buyers were rushing to move before the stamp duty increase in England. Consequently, in February, sellers have adopted a more cautious approach by holding onto January's gains rather than pushing prices higher, at a time when competition remains intense and the market continues to be exceptionally price-sensitive."
Comparative Market Strengthening
When compared to two years prior, the market demonstrates clear signs of strengthening, with the number of newly listed properties currently 11 per cent higher than in 2024, and sales agreed up by a solid 9 per cent. Ms Babcock suggested that 2026 could potentially become a favourable year for prospective buyers across the nation.
"Over the last three years average wages have increased by approximately 17%, significantly outstripping property prices which have risen by just 1.5% over the identical period," she noted authoritatively. "A more favourable mortgage rate and lending environment are both also helping to improve buyer affordability substantially. For those who are ready to move soon, February could offer a useful window of opportunity to act before the peak spring selling season, when prices traditionally rise."
Regulatory Changes and Mortgage Accessibility
Matt Smith, a mortgage expert at Rightmove, highlighted the positive impact of recent regulatory changes. "Last year's review of the loan-to-income cap and reminder to lenders about stress testing flexibility by the Financial Conduct Authority have had the intended positive outcome of enabling the typical buyer to borrow more," he stated clearly.
"Additionally, there continues to be a strong focus from lenders on helping first-time buyers, with many lenders creating innovative new products specifically designed to help eligible buyers borrow larger sums." Local property agents have echoed this optimistic sentiment throughout various regions.
Regional Perspectives and Market Realism
Craig Webster, managing director at Tiger Sales & Lettings in Blackpool, observed: "Sellers are becoming more realistic as competition remains high, but demand remains resilient. For buyers, conditions are improving consistently. Mortgage rates are trending downwards, lenders are increasingly competitive and importantly wage growth has outpaced house price growth in recent periods, helping affordability considerably."
He advised strategically that those "prepared and decisive are likely to be in the strongest position" as the busy spring market approaches rapidly. Katie Griffin, director at Sawdye & Harris in Dartmoor, added: "Spring is always our busiest time, and I think we'll see improved activity if sellers continue to price sensibly. There's genuine buyer demand out there – people have just been waiting patiently for the right moment and the right property at the right price."
UK Housing Stock Valuation
In related research conducted separately, the property firm Savills has estimated that the total value of homes across the United Kingdom now stands at a staggering £9.18 trillion. This enormous figure encompasses properties owned outright, those with an existing mortgage, social housing, and the expansive private rented sector.
The total value of the UK's housing stock grew by an additional £136 billion during 2025, though this increase was notably less than the £268 billion added in value during the previous year. Lucian Cook, head of residential research at Savills, noted that the capital appreciation of £336 billion since the conclusion of 2022 represents the lowest for any three-year period since 2013.
Regional Contributions and Market Variations
He attributed this moderated growth to initial pressure from rising mortgage costs in 2023, the housing market's slow response to recent Bank of England base rate cuts, an absence of meaningful price growth in London and the South East, and falling levels of house building nationally.
Interestingly, despite accounting for only 27 per cent of the total value of UK homes, the North of England and the devolved nations have contributed a remarkable 60 per cent of the total growth observed since 2022. The North West emerged definitively as the top-performing region, with the total value of its housing stock increasing by £63 billion since 2022.
