UK House Prices Hold Firm in February - But 2026 Still Off to the Strongest Start Since 2020

The latest UK House Price Index from Rightmove shows that average asking prices remained virtually unchanged in February, signalling a steady and price-sensitive market as we move towards the busy spring period.

While this month’s figures may appear subdued at first glance, the wider picture tells a more positive story, particularly for buyers.

Prices Flat in February After January Surge

The average asking price of newly listed homes in the UK is now £368,019, down by just £12 (0.0%) compared with January’s £368,031.

However, this follows a record-breaking January increase for the time of year, meaning 2026 has still delivered the strongest start to a year for house prices since 2020, with prices up 2.8% since December.

Early momentum was largely driven by renewed market confidence after prolonged Autumn Budget uncertainty, with many sellers who had delayed decisions bringing their properties to market in January.

February’s steady pricing reflects:

• A high number of homes for sale
• Stable (rather than surging) buyer demand
• Sellers taking a more cautious, competitive approach

In short, the market is active, but measured.

Is 2026 a Good Year to Buy?

All indicators suggest that 2026 is shaping up to be a favourable year for buyers, thanks to improved affordability and increased choice.

Key factors include:

• Average property prices are level with last year
• Average earnings are up 4.7% year-on-year
• Over the last three years, wages have risen around 17%, while property prices have increased by just 1.5%
• The number of homes for sale is at an 11-year high for this time of year
• Lenders are offering more flexible borrowing options
• The average two-year fixed mortgage rate has fallen to 4.28%, down from 4.96% a year ago

Mortgage rates remain near their lowest levels since the market turbulence following the September 2022 mini-Budget, helping to further support affordability.

For first-time buyers in particular, this combination of stable pricing, stronger wages and improved lending conditions creates genuine opportunity.

Market Breakdown by Sector

February figures show:

First-Time Buyers

• Average price: £226,050
• Monthly change: +0.2%

Second-Steppers

• Average price: £343,603
• Monthly change: +0.7%

Top of the Ladder

• Average price: £657,604
• Monthly change: -0.2%

This balanced movement across sectors reinforces the idea of a stable, competitive market rather than one experiencing sharp corrections or overheating.

What Does This Mean for Shropshire & Worcestershire Sellers and Buyers?

At Nock Deighton, we are seeing similar trends locally across Shropshire and the surrounding areas:

• Strong levels of new instructions
• Motivated, proceedable buyers
• Continued price sensitivity
• Increased negotiation due to greater choice

With more properties available, realistic pricing and strong presentation remain critical for sellers who want to stand out.

Comment from Chris Kemp, Sales Director at Nock Deighton

“While national figures show prices standing still in February, the key takeaway is the strength of the start to the year. January gave the market real momentum, and what we’re seeing now is a more balanced and sustainable environment." - Chris Kemp, Sales Director, Nock Deighton

Looking Ahead

With confidence returning, mortgage rates easing, and stock levels high, 2026 is shaping up to be a stable, opportunity-driven market rather than one dominated by volatility.

For buyers, February could present a window to secure a purchase before the traditional spring uplift in activity and pricing.

For sellers, preparation and positioning will be everything.

If you’re considering a move in 2026, our team at Nock Deighton would be delighted to offer tailored advice based on your local market.