What's happened
UK house prices remained largely flat in February after a strong January rise, with prices up 2.8% since December. Market activity shows signs of recovery, driven by renewed seller confidence and improving affordability, despite ongoing high supply and subdued sales volumes.
What's behind the headline?
The recent stabilization in UK house prices reflects a cautious but optimistic shift in the market. The January surge was driven by sellers returning to the market after budget-related hesitations, and this momentum has carried into February. However, the market remains price-sensitive, with high supply and subdued sales indicating that buyers are still cautious. The increase in newly listed properties and agreed sales compared to 2024 suggests a strengthening foundation for the spring season. Mortgage rates, now lower than last year, are improving affordability, especially for first-time buyers, which could further stimulate activity. Nonetheless, the persistent supply-demand imbalance and economic uncertainties mean that the market's recovery will likely be gradual, with prices remaining relatively stable in the near term. The key will be whether buyer confidence continues to grow and if mortgage conditions remain favorable, which will determine if the market can sustain its recent gains and move toward a more balanced state.
What the papers say
The reports from Reuters and The Independent highlight the recent price stability and cautious optimism in the UK housing market. Reuters notes that asking prices showed no change in February after a strong January, with prices up 2.8% since December, and the total number of homes for sale at an 11-year high. The Independent emphasizes that despite February's near-stagnation, the market's start to 2026 remains the strongest since 2020, driven by renewed seller confidence and improved affordability. Both sources agree that the market is in a cautious recovery phase, with supply still high and sales activity below last year's levels, but showing signs of resilience and potential growth as mortgage rates stay lower and buyer sentiment improves.
How we got here
The UK housing market experienced a significant price jump in January 2026, the largest for that month in five years, following a period of uncertainty linked to the autumn budget and economic factors. Prices have since stabilized in February, with market activity gradually rebounding as mortgage rates ease and buyer confidence improves.
Go deeper
More on these topics