## Overview of House Price Trends in Early 2026

The latest house price index from e.surv Chartered Surveyors reports that the average property price across Great Britain stood at £329,000 in February 2026. This figure represents an annual increase of 1.8%, signalling modest growth in the housing market during the first two months of the year. The rise is attributed to improved affordability, reduced volatility in mortgage pricing, and the return of buyers who postponed purchases in the previous autumn.

Mortgage valuation volumes indicate that the current level of activity typically leads to completed sales within two to three months, suggesting a potential increase in transactions for landlords and agents in the near term.

## Monthly and Quarterly Price Movements Show Slight Declines

Despite the annual growth, house prices experienced a small month-on-month decrease of 0.1% and a quarter-on-quarter decline of 0.4%. These figures highlight a subtle cooling in the market over shorter time frames. Affordability remains a key factor influencing buyer decisions, especially in higher-value regions where price sensitivity is more pronounced.

Lenders continue to exercise caution, maintaining tight margins as borrowing costs fluctuate. This cautious approach may affect mortgage availability and terms, which landlords should monitor when advising tenants or considering refinancing.

## Regional Disparities in House Price Growth

Regional variations in house price growth remain pronounced. Scotland leads with an annual increase of 4.3%, and an average property price of £226,500. The North West and Wales follow with strong annual rises of 3.4%, with average prices of £249,000 and £235,500 respectively. Yorkshire also saw a 3% increase in prices.

The West Midlands recorded a 2.8% growth to £279,500, while the East Midlands grew by 2.3%, reaching an average price of £266,000. These regions demonstrate resilience and potential opportunity for landlords targeting areas with rising values.

In contrast, London continues to experience a decline, with prices down 2.5% year on year, marking 34 consecutive months of annual decreases. The South East and East of England also saw slight falls of between 0.6% and 0.7%. Landlords operating in these regions may face challenges related to lower capital growth and should consider local market conditions carefully.

## Market Volatility and Mortgage Pricing Outlook

The report highlights an unsettled global economic backdrop as March begins, contributing to volatility in financial markets. Swap rates have become less predictable, creating a lending environment that differs from earlier expectations in 2026. Some lenders have already increased mortgage rates or withdrawn products in response to these conditions.

Nevertheless, current mortgage rates remain below those recorded in late 2023, which may provide some relief to borrowers and landlords seeking financing. Landlords should stay informed about mortgage market developments, as changes in lending conditions can impact investment decisions and tenant affordability.

## What This Means for Landlords and Letting Agents

The modest annual growth in house prices, combined with regional disparities and short-term price declines, suggests a cautious but stable market environment. Landlords should consider regional trends when evaluating property investments, as areas like Scotland, the North West, and Wales show stronger growth potential compared to London and the South East.

Mortgage market volatility underscores the importance of monitoring lending conditions, as fluctuations may affect borrowing costs and availability. Staying informed will help landlords and letting agents advise tenants effectively and make strategic decisions regarding portfolio management.

Suggested internal link anchors
– house price growth
– mortgage pricing
– regional property markets
– affordability in housing
– property investment trends
– lending environment
– market volatility
– landlord mortgage options
– property price index
– rental market conditions
– Scotland property market
– London housing market

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/