## UK House Prices Remain Stable in February 2026

The UK housing market showed signs of stability in February 2026, with Nationwide reporting a 0.3% month-on-month rise in average house prices to £273,176. This modest increase maintained the annual growth rate at 1%, following a record rise in January. The figures suggest a cautious recovery after a slowdown at the end of 2025, influenced by uncertainty over potential property tax changes ahead of the Budget.

Robert Gardner, Nationwide’s chief economist, noted, “This reinforces the view of a modest recovery after a dip at the end of 2025, most likely reflecting uncertainty around potential property tax changes ahead of the Budget.” He added that mortgage approvals for house purchases remain close to pre-pandemic levels, indicating sustained demand.

## Buy-to-Let Purchases See Gradual Increase

The housing market saw a 10% increase in transactions in 2025 compared to 2024, supported by improved affordability and easier credit availability. First-time buyer mortgage completions rose by 18% year on year, reflecting this trend.

Gardner highlighted a gradual rise in buy-to-let (BTL) purchases involving mortgages, although activity remains subdued compared to historic levels. He explained that “the higher interest rate environment tends to exert more of a drag on landlord demand (rather than owner occupier), while changes to the regulatory environment have also impacted landlord sentiment.” This suggests landlords should remain cautious about market conditions affecting rental investments.

## Industry Experts Reflect on Market Conditions

Propertymark CEO Nathan Emerson described the continued upward movement in house prices as a sign of “resilient demand in many parts of the UK despite ongoing affordability constraints.” He emphasised the need for policies that increase housing supply to prevent further affordability pressures, which is critical for landlords and agents managing rental demand.

Financial planner Ian Futcher of Quilter commented, “While this suggests a gradual recovery compared to the dip seen towards the end of last year, we are unlikely to see a marked uplift in house prices for a while yet.” He noted that despite slightly easing mortgage rates and competitive lender offerings, market activity remains subdued.

North London estate agent Jeremy Leaf observed increased buyer confidence following the Budget, stating, “Demand has picked up over the last month or so with buyers breathing a collective sigh of relief that Budget measures weren’t as potentially damaging as rumours would have us believe.” He expects the Spring Statement to have little impact on market decisions.

## Supply Levels Help Stabilise Prices

Iain McKenzie, CEO of The Guild of Property Professionals, pointed out that elevated supply levels are helping to keep price growth in check. “This is helping to stabilise values even as demand begins to improve,” he said, highlighting a healthy market balance that supports sustainable growth rather than short-term spikes.

Tom Bill, head of UK residential research at Knight Frank, noted that house price growth was flat in February as the post-Budget bounce faded. He cautioned that domestic political uncertainty, including a Labour leadership challenge, and international factors such as the Middle East conflict, could dampen market sentiment or impact inflation, though it is too early to assess these effects.

## What This Means for Landlords and Agents

The steady house prices and modest growth signal a cautious but stable market environment for landlords and letting agents. While demand is improving, affordability constraints and regulatory changes continue to influence buy-to-let activity. Elevated supply levels provide tenants with choice and negotiating power, which landlords should consider when setting rents or marketing properties. Monitoring mortgage availability and political developments will remain important for anticipating future market shifts.