The average price of newly listed homes for sale is virtually flat in February, down by just £12 (-0.0%) to £368,019. Despite this standstill in prices, January’s record asking price increase for the time of year means it is still the strongest start to a year for asking prices since 2020. Below, a range of experts from across the mortgage and property sector share their insight and views with us to provide a stronger outlook into the market as the year progresses.
Colleen Babcock, property expert at Rightmove, highlights what is happening with property prices, current market activity, and mortgage rates:
Price growth at the start of this year has been front-loaded more than usual due to an early-year boost in buyer and seller confidence as Budget uncertainty ended. This is supported by Rightmove’s monthly confidence tracker, which measures the sentiments of homeowners, renters, prospective first-time buyers and landlords towards the market. It shows that net confidence among buyers and sellers in January returned to its highest level since September 2025. In February, January’s price gains have held, but new sellers have refrained from further increases to prices as market realities set in.
Many sellers, some of whom had been holding back because of the Budget, came to market in early 2026 with renewed confidence, which helped to drive that bumper January price rise.
What’s happening with market activity?
“Market activity is difficult to compare with this time last year, as the looming stamp duty deadline at the end of March in England was still affecting overall averages last year. Some hopeful movers at this time last year were continuing to try to beat the odds by securing a new home and completing the purchase before higher taxes took effect, particularly in the more expensive south of England
With the peak spring selling season approaching, buying conditions for 2026 movers are favourable. February’s average price standstill means that the average asking price is the same as a year ago, which is particularly beneficial to first-time buyers who are saving up for their first deposit. Lenders are also continuing to look at innovative ways to help buyers, including through very small or no deposit mortgages, or allowing some eligible borrowers to access up to six times their income.”
What’s happening with mortgage rates?
“2026 is shaping up to be a good year to buy. Over the last three years, average wages are up by around 17%, significantly outstripping property prices, which are up by just 1.5% over the same period. A more favourable mortgage rate and lending environment are also helping to improve buyer affordability. For those who are ready to move soon, February could offer a useful window of opportunity to act before the peak spring selling season, when prices usually rise.”
Further expert insights
Matt Smith, Rightmove’s mortgage expert, says: “Last year’s review of the Loan-to-Income cap and reminder to lenders about stress testing flexibility by the FCA have had the intended positive outcome of enabling the typical buyer to borrow more. On top of this, there continues to be a strong focus from lenders on helping first-time buyers, with many lenders creating new products to help eligible buyers borrow larger sums. This is a big contributor to improving affordability as both first-time buyers and home-movers are better equipped to borrow what they need and can afford to repay.”
Craig Webster, Managing Director, Tiger Sales & Lettings in Blackpool says: “After a strong increase in January, the flatter pricing we are seeing in February feels like a natural pause rather than a slowdown. Sellers are becoming more realistic as competition remains high, but demand remains resilient. For buyers, conditions are improving. Mortgage rates are trending down, lenders are increasingly competitive and importantly, wage growth has outpaced house price growth in recent periods, helping affordability. In markets like Blackpool, that combination means buyers who delay decisions can still end up paying more, as demand remains strong and competition increases during the spring market, even when headline prices appear stable. As we head into the busy spring market, those who are prepared and decisive are likely to be in the strongest position.”
Katie Griffin, Director at Sawdye & Harris in Dartmoor, says: “We are definitely seeing sellers being more realistic with their pricing this February compared to the optimism we saw in January. When there’s plenty of choice on the market, buyers can afford to be selective, and that’s keeping asking prices in check.
For buyers, the conditions are looking quite positive. Mortgage rates have come down, wages are up, and lenders seem more willing to work with people to make borrowing viable. It’s a much better position than we were in this time last year.
