Average house price falls in February after January’s huge surge

Across Britain, the average asking price for a home coming on the market in February is £368,019, Rightmove said

The average asking price for a home in Britain saw a marginal dip of £12 in February, following a substantial surge of nearly £10,000 in January, according to new data from property website Rightmove. This slight decrease brings the average asking price across the country to £368,019, down from £368,031 the previous month.

The January increase, which saw prices jump by £9,893, marked the largest rise for that month in Rightmove’s 25 years of house price analysis. Despite February’s near-stagnation, the robust start to the year means 2026 has recorded the strongest opening for asking prices since 2020, with a 2.8 per cent increase since December. Rightmove attributes this early year growth to a rebound in confidence after a prolonged period of uncertainty surrounding the autumn budget.

Colleen Babcock, a property expert at Rightmove, emphasised the need to view February’s figures in context. "Virtually flat prices in February really needs to be viewed alongside what happened in January," she explained. "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 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.

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."

Compared to two years ago, the market shows signs of strengthening, with the number of newly listed properties 11 per cent higher than in 2024, and sales agreed up by 9 per cent.

The average price tag on a home edged down by £12 month-on-month in February following a record jump of nearly £10,000 in January, according to a property website (Yui Mok/PA Wire)

Ms Babcock suggested that 2026 could be a favourable year for buyers. "Over the last three years average wages are up by around 17%, significantly outstripping property prices which are up by just 1.5% over the same period," she noted. "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, a mortgage expert at Rightmove, highlighted the positive impact of regulatory changes. "Last year’s review of the loan-to-income cap and reminder to lenders about stress testing flexibility by the FCA (Financial Conduct Authority), have had the intended positive outcome of enabling the typical buyer to borrow more," he said. "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."

Local agents echoed this sentiment. 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. Mortgage rates are trending down, lenders are increasingly competitive and importantly wage growth has outpaced house price growth in recent periods, helping affordability." He advised that those "prepared and decisive are likely to be in the strongest position" as the busy spring market approaches.

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 for the right moment and the right property at the right price."

In related research, property firm Savills estimated the total value of homes across the UK now stands at a staggering £9.18 trillion, encompassing properties owned outright, with a mortgage, social housing, and the private rented sector. The total value of the UK’s housing stock grew by an additional £136 billion in 2025, though this was less than the £268 billion added in value the year prior.

’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,’ says Rightmove (Alamy/PA)

Lucian Cook, head of residential research at Savills, noted that the capital appreciation of £336 billion since the end of 2022 is the lowest for a three-year period since 2013. He attributed this 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 price growth in London and the South East, and falling levels of house building.

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 60 per cent of the total growth since 2022. The North West emerged as the top-performing region, with the total value of its housing stock increasing by £63 billion since 2022.