UK House Prices Stall in February After Strong Start to 2026

UK house prices experienced a near standstill in February 2026, with the average price of newly listed properties slipping by just £12 to £368,019. This 0% monthly change contrasts with the typical 0.8% uplift usually seen in February over the past decade, indicating a pause in the market following January’s record-breaking price rise.

January had delivered the strongest start to a year since 2020, with prices increasing by 2.8% since December 2025. This surge was driven by renewed seller confidence and increased market activity after a period of uncertainty surrounding the late November Budget and the usual Christmas slowdown.

Market Supply and Buyer Activity Influence Price Stability

The volume of homes available for sale in February reached an 11-year high for this time of year, intensifying competition among vendors. However, buyer activity has stabilised rather than accelerated, limiting further upward pressure on prices.

Rightmove’s property expert Colleen Babcock commented on the situation: “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.”

She 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.”

Improved Mortgage Environment Supports Buyers

Babcock further noted that 2026 is shaping up to be a favourable year for buyers, thanks to a more favourable mortgage rate and lending environment. These factors are helping to improve buyer affordability, which is a key consideration for landlords and letting agents monitoring tenant demand and market conditions.

Price and Sales Trends Reflect Market Realities

Rightmove’s sentiment tracker showed that confidence among buyers and sellers peaked in January at its highest level since September 2025, but February brought a more cautious approach as pricing realities returned.

Comparisons with early 2025 remain skewed due to last year’s stamp duty deadline, which accelerated transactions. Fresh property listings are currently only 1% below last year’s levels but stand 11% higher than in 2024. Meanwhile, sales agreed are 5% down annually but 9% ahead of two years ago.

Average asking prices now match those seen 12 months ago, while wages have increased by 4.7% year-on-year, comfortably outpacing recent house price growth. This wage growth may support tenant affordability in the private rented sector, an important factor for landlords.

What This Means for Landlords and Letting Agents

The current market pause following January’s price surge suggests a period of stability for landlords. The increased supply of properties may intensify competition among sellers, potentially providing better opportunities for landlords to acquire new properties or negotiate favourable terms.

Steady buyer activity combined with improved mortgage affordability could maintain tenant demand, supporting rental market stability. However, landlords should remain aware of the cautious market sentiment as pricing pressures ease.

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• UK house prices February 2026
• market fundamentals
• mortgage rate and lending environment
• buyer affordability
• property listings
• sales agreed
• average asking prices
• wage growth
• private rented sector
• tenant demand
• landlord opportunities
• property market trends

TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/