UK house prices flatline in February after January’s record rise

The price of newly listed property barely moved in February, slipping by £12 to £368,019, as the market paused following a sharp rise at the start of the year.

The standstill represents a 0% monthly shift, well below the typical 0.8% February uplift seen over the past decade.

However, the flatlining comes straight after a record January jump to make 2026 delivering the strongest start to a year since 2020, with prices up 2.8% since December.

The volume of homes on the market sits at an 11-year high for this point of the year, intensifying competition between vendors.

At the same time, buyer activity has steadied rather than accelerated, limiting scope for further price rises.

Market fundamentals remain

Rightmove’s property expert, Colleen Babcock, said: “Virtually flat prices in February really needs to be viewed alongside what happened in January.

“After the prolonged uncertainty in the run up to the late November Budget, plus the usual Christmas slowdown, we saw activity pick up again from Boxing Day.

“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.

“But the market fundamentals haven’t changed.”

She added: “2026 is shaping up to be a good year to buy.

“A more favourable mortgage rate and lending environment are both also helping to improve buyer affordability.”

House price realities

Rightmove’s sentiment tracker highlights that confidence among both buyers and sellers climbed in January to its highest level since September 2025.

However, February brought a more measured approach as pricing realities returned.

Comparisons with early 2025 remain distorted by last year’s stamp duty deadline, which pulled forward transactions.

Even so, fresh listings are only 1% below last year but stand 11% higher than 2024 levels.

Sales agreed sit 5% down annually but are 9% ahead of two years ago.

Average asking prices now match levels seen 12 months ago and wages have climbed 4.7% year-on-year, comfortably outstripping recent house price growth.