Tom Bill
Average asking prices remain flat in February, holding at £368,019 after January’s record rise, according to Rightmove.
The first two months of 2026 have seen prices climb 2.8% since December, driven by a boost in buyer and seller confidence following Budget clarity.
While price gains from January have held, new listings have largely avoided further increases as market activity slows and competition among sellers remains elevated.
Industry reaction:
Tom Bill, head of UK residential research at Knight Frank, said: “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.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman: “When the increase in demand just about matches the increase in supply, the result is stalemate. Prices are not really moving.
“However, Rightmove’s figures reflect asking prices not values, which determine whether genuine interest is attracted.
“Price stability, complemented by lower mortgage costs and lender flexibility, is supporting much more demand on the ground, particularly from first-time buyers while average earnings outpace house-price growth.
“However, caution remains not just as a result of more choice but continuing economic and political uncertainty so, looking forward, steeper price rises are unlikely – at least for the time being.”
Tony Gambrill, regional sales director at Chestertons: “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.”
Craig Webster, MD, Tiger Sales & Lettings: “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 [home to Tiger Sales & Lettings], 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.”
Katie Griffin, director at Sawdye & Harris: “We are definitely seeing sellers being more realistic with their pricing this February compared to the optimism we saw in January. When there’s plenty of choice on the market, buyers can afford to be selective, and that’s keeping asking prices in check.
“For buyers, the conditions are looking quite positive. Mortgage rates have come down, wages are up, and lenders seem more willing to work with people to make borrowing viable. It’s a much better position than we were in this time last year.
“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 for the right moment and the right property at the right price.”
