UK House Prices Experience Minor Dip in February Following Record January Increase
Households across the United Kingdom have encountered a slight adjustment in the property market, with average asking prices edging down by £12 month-on-month in February. This follows a substantial surge of nearly £10,000 recorded in January, according to the latest data from the property website Rightmove.
Rightmove reported that the average asking price for a home entering the market in February stands at £368,019. The previous month's increase of £9,893 was noted as the most significant rise for January in the company's 25-year history of monitoring house prices.
Market Dynamics and Seller Sentiment
Colleen Babcock, a property expert at Rightmove, provided context for the February figures. "Virtually flat prices in February really need to be viewed alongside what happened in January," she explained. "After the prolonged uncertainty leading up to the late November budget, combined with the typical Christmas slowdown, we observed activity resuming from Boxing Day."
Babcock highlighted that many sellers, who had previously delayed listing their properties due to budgetary concerns, returned to the market in early 2026 with increased confidence. This resurgence contributed to the exceptional price growth witnessed in January.
"But the market fundamentals haven't changed," Babcock cautioned. "There are still numerous homes available for sale, and purchasing activity is not as robust as it was at this time last year, when buyers were hastening to complete transactions before the stamp duty increase in England."
She added that sellers in February have adopted a more prudent strategy by maintaining the gains achieved in January rather than attempting to elevate prices further. This approach comes at a time when competition remains intense and the market continues to demonstrate sensitivity to pricing.
Opportunities for Buyers in the Current Climate
Babcock also pointed out that 2026 appears to be shaping up as a favourable year for prospective buyers. "Over the last three years, average wages have increased by approximately 17%, significantly surpassing property price growth, which has risen by just 1.5% over the same period," she noted.
Additionally, a more advantageous mortgage rate environment and improved lending conditions are enhancing buyer affordability. Babcock suggested that for individuals prepared to move promptly, February might present a valuable opportunity to act before the peak spring selling season, when prices traditionally experience an upward trend.
Mortgage Market Developments and Lender Initiatives
Matt Smith, a mortgage expert at Rightmove, commented on recent regulatory changes. "Last year's review of the loan-to-income cap and the reminder to lenders about stress testing flexibility by the Financial Conduct Authority have achieved the intended positive outcome of enabling typical buyers to borrow more," he stated.
Smith further emphasized that lenders maintain a strong focus on assisting first-time buyers, with many institutions developing new products designed to help eligible purchasers secure larger loan amounts.
Regional Perspectives and Market Resilience
Craig Webster, managing director of Tiger Sales & Lettings in Blackpool, offered insights from a local standpoint. "Sellers are becoming more realistic as competition remains high, but demand persists resiliently," he observed.
Webster also noted improving conditions for buyers. "Mortgage rates are trending downward, lenders are growing increasingly competitive, and importantly, wage growth has exceeded house price growth in recent periods, which aids affordability," he concluded.
