House prices stall in February but outlook positive for 2026, Rightmove reports
UK house prices have seen the strongest start to a year since 2020 despite a lack of growth in February.
Rightmove’s latest House Price Index reported the UK average house price as £368,019, falling just £12 from January. Despite the standstill, house prices are still 2.8% higher than December 2025.
Rightmove says that early year price growth was front-loaded into January due to improving confidence following prolonged Autumn Budget uncertainty. However, a high choice of homes for sale and steadying buyer activity have prevented a February rise.
The housebuying platform says that 2026 could see increased activity due to improved affordability and growing choice in the market. Average property prices remain the same as a year ago, while average earnings have risen by 4.7% year-on-year, outpacing the last three years of cumulative property price growth.
It also says that the number of homes for sale is at an 11-year high for the time of year, and that average mortgage rates are close to their lowest level since the mini-Budget in September 2022.
Rightmove’s 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.
Colleen Babcock, property expert at Rightmove, commented: “Lower price growth supported buyer affordability and drove activity in the first half of the year, even after the April stamp duty deadline in England. In the second half of 2025, uncertainty caused by rumours of property tax changes in November’s Budget swirled, some from as early as August. This had an impact on pricing and activity, as sellers tried to entice nervous buyers. The market will soon benefit from the traditional boost in home-moving activity from Boxing Day. Rightmove’s Boxing Day Bounce is an annual event where we see many begin or resume their plans to move after the distraction of Christmas. With the turkey and trimmings barely off the table, each year we see people heading straight to Rightmove to browse the fresh listings for sale and imagine how different next Christmas could look.”
“With market conditions supporting higher levels of activity, and a hopefully more certain economic environment, we forecast a better year for price growth in 2026 with a strong rebound in activity to kick start the year. However, with buyer choice remaining high, sellers will still need to come to the market at tempting prices to attract attention and do all that they can to ensure that their property is presented as well as possible. A more stable 2026 would be good for buyer confidence, which in turn would further boost activity levels, leading to a modest price increase.”
Source: Showhouse
