UK House Prices Pause in February After January’s Record Surge

The UK housing market showed a slight pause in February 2026, following a record increase in January. The average asking price for homes decreased by a mere £12, resulting in a monthly figure of £368,019, down from January’s £368,031. This month-on-month change follows a remarkable £9,893 surge at the beginning of the year, marking the largest January jump in Rightmove’s 25-year history.

January Surge and February Pause

Although February typically witnesses a rise in asking prices, this year’s figures suggest a more subdued approach. Over the past decade, prices usually climb by an average of 0.8 percent during this month. Rightmove explains that the momentum was largely concentrated in January, as confidence returned following seasonal fluctuations and budget uncertainties.

Colleen Babcock, a property expert at Rightmove, emphasized the importance of placing February’s performance in the context of January’s record-breaking activity. Following the uncertainty around the autumn budget and the holiday slow down, there was a notable increase in market activity after Christmas.

Market Stability and New Listings

This year, the market appears more stable compared to 2024. The number of new homes listed has increased by 11 percent compared to two years ago. Sales agreed are also up by nine percent compared to the same point last year. Despite February’s pause, asking prices remain 2.8 percent higher than in December, indicating a strong start to the year.

• Average asking price in February: £368,019
• Decrease from January: £12
• January price surge: £9,893
• New listings increase over two years: 11%
• Sales agreed increase compared to last year: 9%
• Asking prices higher than December: 2.8%

Improved Affordability

Affordability has notably shifted in favor of buyers over the past three years. Average wages have increased by approximately 17 percent since 2023, while house prices have grown by just 1.5 percent during the same period. This change has enabled many typical buyers to borrow more.

Experts note that lenders continue to focus on assisting first-time buyers, contributing to a steady demand within a competitive market. Craig Webster, managing director at Tiger Sales & Lettings, remarked that sellers are becoming more pragmatic in their pricing strategy due to ongoing competition.

Future Outlook for the Housing Market

As the spring season approaches, it is anticipated that market activity will improve if sellers continue to price their properties realistically. However, a broader policy discussion is underway, especially concerning London’s market, where there are indications that price adjustments may be necessary.

Housing minister Matthew Pennycook highlighted the government’s aim to meet its 1.5 million homebuilding target. Recent findings show that London recorded the fewest housing starts in the 2024/25 financial year, complicating the situation further.

The ongoing developments in the UK housing market, particularly in connection to policies and buyer behavior, will be critical to monitor as the year unfolds.