Property portal Rightmove reported that house price growth in the United Kingdom stabilized in February following a strong start to the year—the strongest since 2020. The average asking price for newly listed homes slipped by £12 to £368,019, yet prices remain 2.8% higher compared with December 2025.
Improved market sentiment followed what were considered unfounded fears of tax increases in the Autumn Budget. Meanwhile, a surge in available listings—the highest level in more than a decade—helped stabilize prices as buyers take more time to choose suitable properties.
The portal expects 2026 to be a positive year for both buyers and sellers due to improved affordability and a wider range of options. Average prices are now similar to levels seen a year ago, providing support for first-time buyers. Lenders have also introduced mortgage offers allowing borrowing of up to six times income and have reduced some deposit requirements.
The average two-year fixed mortgage rate stands at 4.28%, down from 4.96% a year earlier, approaching its lowest level since the mini-budget introduced by Liz Truss in September 2022. At the same time, wages rose 4.7% annually and by around 17% over three years, outpacing house price growth of 1.5%.
Separately, mortgage lender Halifax stated that the market entered 2026 on a solid footing, with prices rising 0.7% in January after a 0.5% decline in December. The average property value reached £300,077—surpassing the £300,000 mark for the first time, according to its data. Annual growth accelerated to 1% in January from 0.4% in December.
Despite improved purchasing power supported by wage growth and some mortgage deals falling below 4%, banks, including HSBC, Nationwide Building Society, and Virgin Money, have increased certain borrowing costs due to higher wholesale funding expenses.
