Prices stand still in February but still strongest start to a year for prices since 2020

The average price of newly listed homes for sale is virtually flat in February , down by just £12 (-0.0%) to £368,019.

Despite the standstill in prices in February, January’s record asking price increase for the time of year means that it is still the strongest start to a year for asking prices since 2020, with prices up by 2.8% since December.

Early year price growth was front-loaded into January as confidence rebounded after the prolonged Autumn Budget uncertainty. However, high choice of homes for sale and steadying buyer activity have prevented a February rise.

2026 is shaping up to be a good year to buy due to improved affordability and plenty of choice:

Average property prices same as a year ago, particularly beneficial to first-time buyers saving up their first deposit.

Average earnings are up by 4.7% year-on-year, outpacing the last three years of cumulative property price growth.

Number of homes for sale is at an 11-year high for this time of year, giving buyers more choice and negotiating power.

Lenders are continuing to offer ways for eligible buyers to borrow more.

Average mortgage rates are still near their lowest level since September 2022’s mini-Budget.

Our daily tracker shows that the average two-year fixed mortgage rate is now 4.28%, significantly down from the 4.96% figure a year ago.

Price & activity trend

Regional trends

Affordability trends

February’s House Price Index shows that the average asking price of newly listed homes remained virtually unchanged, dipping by just £12 to £368,019. While prices have stood still this month, January delivered the strongest start to the year for asking prices since 2020, meaning values are still up 2.8% since December.

Much of the early momentum was front-loaded into January as confidence returned following the Autumn Budget uncertainty. In February, however, higher stock levels and steady buyer activity have created a more balanced market, preventing further price rises.

Why 2026 Is Looking Positive for Buyers

From I Am The Agents point of view, 2026 is shaping up to be a very good year to buy:

• Property prices are broadly in line with this time last year, which is helpful for first-time buyers building their deposit.

• Average earnings have risen by 4.7% year-on-year, outpacing recent house price growth.

• The number of homes available for sale is at an 11-year high for this time of year, giving buyers more choice and stronger negotiating power.

• Mortgage rates are near their lowest levels since September 2022, with the average two-year fixed rate now at 4.28% significantly lower than a year ago.

In short, we’re seeing a stable, more affordable market with greater opportunity for buyers who are ready to move.

If you’re considering buying or selling this year, now is a great time to have a conversation.

Get in touch with me for tailored advice on your next move whether you’re testing the market, looking for your first home, or planning a sale in 2026.

List your property today
Email us at info@iamtheagent.com or call us on 0333 4441 007 to get started today.