UK House Prices Stall in February After Record January Surge
UK house prices experienced a significant pause in February, with the average asking price dipping by just £12, following the largest January jump recorded in Rightmove's 25-year history. This marginal month-on-month change comes after a substantial £9,893 surge at the start of the year, marking a record increase for January.
Market Momentum Shifts
According to the property giant Rightmove, new listings coming to market in February are priced at an average of £368,019, compared with £368,031 in January. While February typically sees sellers pushing prices higher, with an average 0.8 per cent rise over the past decade, this year's figures suggest a more cautious tone.
Rightmove explained that the early-year momentum had been "front-loaded" into January, as confidence rebounded following uncertainty around the autumn Budget and the usual Christmas lull. Colleen Babcock, property expert at Rightmove, emphasized that February's flat performance "really needs to be viewed alongside what happened in January."
"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," she said. "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."
Comparative Market Stability
Rightmove noted that in early 2025, buyers in England were racing to complete before a stamp duty change at the end of March, which inflated activity levels. Compared with 2024, however, this year's market appears more stable. The number of newly listed homes is 11 per cent higher than two years ago, and sales agreed are up nine per cent on this point last year.
Despite February's pause, asking prices are still 2.8 per cent higher than in December, marking the strongest start to a year since 2020. This indicates underlying resilience in the property market, even as monthly fluctuations occur.
Affordability Improvements
Rightmove reports that affordability has shifted in buyers' favour over the past three years. Average wages have risen around 17 per cent since 2023, compared with house price growth of 1.5 per cent over the same period. This disparity has improved purchasing power for many potential homeowners.
Matt Smith, mortgage expert at Rightmove, highlighted that last year's review of the loan-to-income cap and the Financial Conduct Authority's reminder to lenders about stress-testing flexibility had "enabled the typical buyer to borrow more." He added, "On top of this, there continues to be a strong focus from lenders on helping first-time buyers."
Estate Agent Perspectives
Estate agents across the UK report steady demand, albeit in a competitive market. Craig Webster, managing director at Tiger Sales & Lettings in Blackpool, observed, "Sellers are becoming more realistic as competition remains high, but demand remains resilient."
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." These insights suggest that while prices may have stalled, market activity remains robust with cautious optimism for the spring season.
Policy Backdrop and London Focus
The latest figures come against a wider policy backdrop in which ministers have signalled that parts of the market, particularly London, may need to cool. Housing minister Matthew Pennycook recently stated that prices in the capital "will probably need" to adjust, as the government seeks to hit its 1.5 million homebuilding target and prioritise affordability.
He emphasized that Labour wants to encourage developers to compete on volume to increase supply. However, London's construction pipeline has weakened sharply, with just 4,170 housing starts recorded in the 2024/25 financial year, the lowest of any UK region, according to research by the Centre for Policy Studies.
The think tank attributed this slowdown to tougher regulation, rising costs, and planning delays, highlighting challenges in meeting housing demand in key areas like London.
