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The average asking price of newly listed homes remained largely unchanged in February, slipping just £12 (-0.0%) to £368,019.
This follows a record jump in January, making the first two months of 2026 the strongest start to a year for prices since 2020, with a 2.8% increase since December. Typically, February sees a 0.8% rise, highlighting how front-loaded price growth has been this year.
Rightmove attributes the early-year surge to a boost in buyer and seller confidence after Budget uncertainty subsided. Its monthly confidence tracker shows that net confidence among buyers and sellers in January reached its highest level since September 2025.
In February, these gains have held steady, though new sellers have generally refrained from further increases. Competition among sellers remains at an eleven-year high, while overall buying activity is lower than at the same point in 2025, following last year’s rush to complete purchases ahead of stamp duty increases in England.
Rightmove’s Colleen Babcock said: “Virtually flat prices in February 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.
“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.”
What’s happening with market activity?
Market activity this year is difficult to compare directly with 2025, when the looming stamp duty deadline in England skewed averages. At this time last year, many buyers were rushing to complete purchases ahead of higher taxes, particularly in the more expensive south of England. By contrast, current trends show steadier conditions. The number of newly listed properties is just 1% below last year but 11% higher than in 2024. Similarly, sales agreed are 5% below this time in 2025 but 9% higher than in 2024.
With the peak spring selling season approaching, conditions for buyers in 2026 are relatively favourable. February’s price standstill means average asking prices are in line with a year ago, which benefits first-time buyers saving for deposits. Average earnings have risen 4.7% annually, comfortably outpacing the 1.5% total property price growth over the past three years.
A high number of homes on the market continues to give buyers more choice and greater negotiating power. The Financial Conduct Authority is currently reviewing the mortgage market, which could lead to further changes. Ahead of that review, both the Bank of England and the FCA introduced measures in 2025 to give lenders more flexibility on Loan‑to‑Income limits and stress testing. Lenders are also exploring options such as low- or no-deposit mortgages and offering some eligible borrowers access to loans up to six times their income.
What’s happening with mortgage rates?
Mortgage rates remain close to their lowest levels since before September 2022’s mini‑Budget, despite small increases in recent weeks, also supporting overall affordability. Rightmove’s daily mortgage tracker shows that the average two-year fixed mortgage rate is now 4.28%, significantly down from 4.96% at this time last year. This year-on-year drop in rates is saving typical new buyers around £100 on monthly mortgage payments.
Babcock added: “2026 is shaping up to be a good year to buy. 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.
“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.”
Property industry reacts to new Rightmove House Price Index
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