" In February, sellers have taken a more cautious approach by holding onto January’s gains rather than pushing prices higher, at a time when competition is high, and the market is still very price-sensitive"
- Colleen Babcock - Rightmove
The latest data released by Rightmove has revealed that the average asking price of newly listed homes slipped by just £12 in February, leaving prices virtually unchanged month on month at £368,019. While February typically records a 0.8% rise based on the past decade, this year’s pause follows an unusually strong January.
Despite the lack of movement this month, the first two months of 2026 together represent the strongest start to a year for asking prices since 2020. Prices are up 2.8% since December, driven largely by a rebound in confidence after uncertainty linked to the Autumn Budget eased.
Early price growth was concentrated in January as both buyers and sellers returned to the market following the Christmas slowdown. Rightmove’s monthly confidence tracker shows net confidence among buyers and sellers reached its highest level since September 2025. In February, however, competition among sellers remained at an eleven-year high, and buyer activity was lower than at the same point last year, when many purchasers rushed to complete ahead of stamp duty changes in England.
“Virtually flat prices in February really need to be viewed alongside what happened in January,” said Colleen Babcock, property expert at Rightmove.
“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. 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. But the market fundamentals haven’t changed."
She added, "There are still lots of homes 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. So in February, sellers have taken a more cautious approach by holding onto January’s gains rather than pushing prices higher, at a time when competition is high, and the market is still very price-sensitive.”
Market activity trends
Comparisons with early 2025 remain distorted by last year’s stamp duty deadline in England, which boosted activity in higher-priced areas, particularly in the south. When set against 2024, current trends appear stronger.
The number of newly listed homes is 1% lower than a year ago but 11% higher than two years ago.
Sales agreed are 5% below this time in 2025 but 9% higher than in 2024.
With the spring selling season approaching, conditions for buyers are improving. February’s standstill means average asking prices are unchanged from a year ago, offering relief to first-time buyers saving for deposits. Wage growth continues to outpace house price growth, strengthening affordability.
Why 2026 looks favourable for buyers
Several factors are combining to create more balanced conditions in the market:
Average property prices are broadly the same as a year ago, easing pressure on first-time buyers.
Average earnings have risen by 4.7% year on year, exceeding the +1.5% growth in house prices over the past three years.
The number of homes for sale is at an eleven-year high for this time of year, increasing choice and negotiating power.
Lenders are offering more flexibility, including higher income multiples and low or no-deposit products for eligible buyers.
Mortgage rates remain close to their lowest levels since before September 2022’s mini-Budget.
Rightmove’s daily mortgage tracker shows the average two-year fixed mortgage rate now stands at 4.28%, down from 4.96% a year ago. This reduction is saving typical new buyers around £100 per month on repayments.
“2026 is shaping up to be a good year to buy,” said Babcock. “Over the last three years, average wages have been up by around 17%, significantly outstripping property prices, which have been up by just 1.5% over the same period. A more favourable mortgage rate and lending environment are both also helping to improve buyer affordability. 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 usually rise.”
Matt Smith, mortgage expert at Rightmove, said regulatory changes have helped buyers borrow more. “Last year's review of the Loan-to-Income cap and reminder to lenders about stress testing flexibility by the FCA has had the intended positive outcome of enabling 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, with many lenders creating new products to help eligible buyers to borrow larger sums. This is a big contributor to improving affordability as both first-time buyers and home-movers are better equipped to borrow what they need and can afford to repay.”
Craig Webster, managing director at Tiger Sales & Lettings in Blackpool, described February as a pause rather than a slowdown. “After a strong increase in January, the flatter pricing we are seeing in February feels like a natural pause rather than a slowdown."
"Sellers are becoming more realistic as competition remains high, but demand remains resilient. For buyers, conditions are improving. Mortgage rates are trending down, lenders are increasingly competitive and importantly, wage growth has outpaced house price growth in recent periods, helping affordability."
"In markets like Blackpool, that combination means buyers who delay decisions can still end up paying more, as demand remains strong and competition increases during the spring market, even when headline prices appear stable. As we head into the busy spring market, those who are prepared and decisive are likely to be in the strongest position.”
Tom Bill, head of UK residential research at Knight Frank, comments, “Plans put on hold by the Budget were activated either side of Christmas, which produced positive demand signals in January. However, buyers and sellers are operating against the backdrop of a Prime Minister on borrowed time and a sluggish economy. A leadership challenge may derail sentiment in the short term, but demand in the longer term will be shaped by the economic policy platform of any new Prime Minister and whether falling inflation can push down mortgage rates.”
Tony Gambrill, Regional Sales Director at Chestertons, says, “Buyer activity has strengthened since the beginning of the year, with house hunters continuing their search despite some lenders recently raising mortgage rates. While some buyers would have welcomed a cut in interest rates earlier this month, the majority remain undeterred and are proceeding with their property search regardless.”
Nathan Emerson, CEO of Propertymark, said, “February’s flat price movement follows a strong January uplift, but with only two weeks of data available so far, it is difficult to form a clear and definitive picture of how the market will perform across the full month. Early indications suggest conditions may be stabilising rather than slowing, but we will need to see how the remainder of February unfolds.
“With wages rising faster than house prices and mortgage rates lower than a year ago, affordability is gradually improving, particularly for first-time buyers.
“An 11-year high in available homes means buyers have more choice, but it also underlines the importance of realistic pricing. In a competitive and price-sensitive market, professional guidance remains key. Overall, 2026 is shaping up to be a more balanced and sustainable year for the housing market.”
