UK house prices in February 2026: steady growth and cautious optimism
Property market news for February has reported signs of stability and increased activity in February 2026, supported by gradually improving affordability, stabilising mortgage rates, and continued buyer demand. Recent index data suggests the market is moving away from the hesitation seen in late 2025.
According to the latest Nationwide House Price Index, UK property prices continued their slow upturn in February 2026:
- Monthly increase: +0.3% from January.
- Annual growth: +1.0% compared with February 2025.
- Average price: approximately £273,176.
This performance matches January’s monthly gain. It shows a steady recovery, not a rapid one, after the slow down in late 2025. These improvements suggest greater market stability, with less policy-driven uncertainty than was seen prior to the autumn budget. Unlike late 2025, early 2026 has not seen the same level of speculative slowdown ahead of the spring forecast, which does not appear to have impacted the property market at this time.
Asking prices in February remained similar to January; however, January recorded one of the strongest starts to a year for new seller asking prices since 2020, leaving average asking prices approximately 2–3% higher than December levels. This suggests seller confidence has remained relatively consistent.
Nationwide’s Chief Economist, Robert Gardner, described the February figures as suggesting “a modest recovery after a dip at the end of 2025”. Gardner has also noted that improvements in affordability and mortgage rates easing has supported first-time buyer activity.
There has been an increase in the number of homes coming to the market, potentially caused by some landlords choosing to sell their properties ahead of ongoing rental sector reforms. This has contributed to a better balance between supply and demand in certain regions. Although this may have slowed price growth in February, it helps create a more balanced market by easing pressure on prices.
However, despite improvements in many regions, it is worth mentioning that affordability remains tight in higher-value areas like London and the South East. In these areas, home prices are much higher than incomes, compared with the national average.
Steady growth is still expected in the coming months. This is especially true as we enter the usual spring selling season.
The UK housing market in early 2026 can best be described as steady and cautiously optimistic, with figures pointing towards a gradual increase in activity:
- Prices are rising, but slowly.
- Growth is modest and consistent, not rapid.
- Affordability improvements are supporting first-time buyers.
- Supply levels are improving, helping to moderate excessive price inflation.
However, it is worth noting that increasing geopolitical uncertainty, particularly the conflict in the Middle East, has introduced new concerns regarding inflation, with the potential for energy price increases. As a result, previously anticipated Bank of England base rate reductions in spring 2026 may be delayed while experts wait to see what effect this conflict might have.
Overall, the market appears more balanced, with conditions pointing towards ongoing gradual growth.
