The common asking value for a house in Britain dropped in February after a report £9,893 bounce in January, based on Rightmove.
UK home costs fall in February after largest January enhance in 25 years (Picture: Getty)
The common asking value for a house slipped by £12 month-on-month in February after a report surge of practically £10,000 in January, based on a property web site. Throughout Britain, the standard asking value for a property coming onto the market in February stands at £368,019, Rightmove mentioned.
In January, the typical price ticket on a house was £368,031. Rightmove beforehand mentioned the £9,893 common asking value enhance seen in January 2026 was the most important for the month in its 25 years of home value research. Over the previous decade, asking costs in February have usually risen by 0.8% month-on-month. But regardless of the typical asking value remaining just about unchanged in February, January’s report asking value surge for the time of yr signifies that 2026 continues to be the strongest begin to a yr for asking costs since 2020, with costs up by 2.8% since December, based on the property web site’s analysis.
The common asking value for a house in Britain dropped by £12 in February (Picture: (Rightmove/PA))
Early-year value progress was concentrated in January as confidence bounced again after a protracted interval of uncertainty surrounding the autumn funds.
Colleen Babcock, property knowledgeable at Rightmove, mentioned: “Nearly flat costs in February actually must be considered alongside what occurred in January. After the extended uncertainty within the run-up to the late November funds, plus the standard Christmas slowdown, we noticed exercise decide up once more from Boxing Day.
“Many sellers, a few of whom had been holding again due to the funds, got here to market in early 2026 with renewed confidence, which helped to drive that bumper January value rise.
“However the market fundamentals have not modified. There are nonetheless plenty of properties on the market, and shopping for exercise is not as sturdy as this time final yr, when many patrons had been speeding to maneuver earlier than the stamp obligation enhance in England.
“So in February, sellers have taken a extra cautious strategy by holding onto January’s beneficial properties reasonably than pushing costs larger, at a time when competitors is excessive, and the market continues to be very price-sensitive.”
Rightmove reported {that a} yr in the past, an impending stamp obligation deadline on the finish of March was influencing the market in England, as purchasers hurried to finalise transactions.
The property portal famous that present developments seem extra sturdy than in 2024.
The quantity of newly marketed properties is 11% larger than two years in the past, while the variety of agreed gross sales stands 9% larger than at this level in 2024.
Ms Babcock continued: “2026 is shaping as much as be a superb yr to purchase. Over the past three years common wages are up by round 17%, considerably outstripping property costs that are up by simply 1.5% over the identical interval.
“A extra beneficial mortgage price and lending surroundings are each additionally serving to to enhance purchaser affordability. For many who are prepared to maneuver quickly, February might supply a helpful window of alternative to behave earlier than the height spring promoting season, when costs normally rise.”
Matt Smith, a mortgage knowledgeable at Rightmove, mentioned: “Final yr’s evaluation of the loan-to-income cap and reminder to lenders about stress testing flexibility by the FCA (Monetary Conduct Authority) has had the supposed constructive end result of enabling the standard purchaser to borrow extra.
It has been the strongest begin to a yr for asking costs since 2020, Rightmove mentioned (Yui Mok/PA) (Picture: PA Archive/PA Photographs)
“On prime of this, there continues to be a powerful focus from lenders on serving to first-time patrons, with many lenders creating new merchandise to assist eligible patrons to borrow bigger sums.”
Craig Webster, managing director, Tiger Gross sales & Lettings in Blackpool, mentioned: “Sellers have gotten extra lifelike as competitors stays excessive, however demand stays resilient.
“For patrons, situations are bettering. Mortgage charges are trending down, lenders are more and more aggressive and importantly wage progress has outpaced home value progress in current intervals, serving to affordability.”
He added: “As we head into the busy spring market, those that are ready and decisive are prone to be within the strongest place.”
Katie Griffin, director at Sawdye & Harris in Dartmoor, mentioned: “Spring is at all times our busiest time, and I believe we’ll see improved exercise if sellers proceed to cost sensibly. There’s real purchaser demand on the market – individuals have simply been ready for the appropriate second and the appropriate property on the proper value.”
The findings had been printed as evaluation from property agency Savills estimated the mixed worth of properties throughout Britain now totals £9.18 trillion.
The calculation included the full worth of properties owned outright, these with mortgages, social housing and the non-public rental sector.
The combination worth of the UK’s housing inventory elevated by an extra £136 billion in 2025, although this represented a smaller rise than the £268 billion added in worth through the earlier yr, Savills famous.
Lucian Cook dinner, head of residential analysis at Savills, mentioned: “Though the full worth of UK housing has continued to edge up over the previous yr, the capital appreciation of £336 billion because the finish of 2022 is the bottom now we have seen for a three-year interval since 2013.
“That partly displays the preliminary strain placed on costs as mortgage prices rose over the course of 2023.
“However equally the housing market has been gradual to answer current cuts in (the Financial institution of England) base price.
“This mixed with an absence of value progress throughout London and the South East, the place values are highest, and falling ranges of home constructing has stored a lid on the mixture quantity.”
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Regardless of the North of England and the devolved nations representing simply 27% of the full worth of UK housing inventory, they’ve generated 60% of total progress since 2022, based on Savills.
The property agent mentioned the strongest performing area is the North West, the place the full worth of housing inventory has risen by £63bn since 2022.
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