But year’s start remains strongest for more than half a decade
This year has so far seen the highest house price growth since 2020, despite a standstill in prices this month.
According to Rightmove’s house price index, values are up 2.8% since December due to high growth in January.
The national average asking price stood at £368,019 in February, barely changed from £368,031 the month before.
The real estate company said the year was shaping up to be a good one for buyers, due to increased affordability and a high degree of choice.
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, while average earnings are up 4.7% year-on-year, which is higher than the last three years of cumulative property growth.
“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,” said Colleen Babcock, property expert at Rightmove.
“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.”
Louise Apollonio, sales and distribution director for Retail Mortgages at Shawbrook, said that following January’s “robust activity”, buyers were now “taking advantage of the number of properties available on the market to explore their options”.
“Though subdued, continued activity could be a positive sign ahead of the Spring Statement, signifying growing consumer confidence, which is certainly what buyers and sellers need,” she said.
“It will be up to the Chancellor to bolster the market by addressing the next steps, as well as providing further support to get first-time buyers on the property ladder.”
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