Your monthly UK housing market update. Covering sold prices, asking prices, surveyor sentiment and what could be next for the property market.
Confidence builds as the market finds firmer ground.
HM Land Registry – Sold Prices
December’s figures suggest the market is easing into the new year rather than racing ahead.
UK sold price inflation slowed to 2.4% in the year to December 2025 (down from 2.8% in November), leaving the average home at £270,000.
Month on month, prices dipped -0.7% on a non-seasonally adjusted basis and -0.1% seasonally adjusted, a fairly typical year-end pause.
Regional contrasts remain striking. England recorded modest annual growth of 1.7%, while Northern Ireland saw a strong 7.5% rise. Within England, the North East continues to lead at 4.6%, while London slipped by -1%, reflecting ongoing affordability pressures.
Overall, sales activity remained resilient at 100,000 transactions (4.7% higher than last year), although mortgage approvals fell to 61,000. The Bank of England notes that achieved prices are increasingly aligning with (and sometimes dipping below) asking levels, reinforcing the theme of a market that’s steady, but price-sensitive.
Rightmove – Asking Prices
After January’s record-breaking jump, February saw asking prices pause for breath.
The average asking price of newly listed homes edged down by just £12 (0%) to £368,019, effectively flat month-on-month. Yet because January delivered the largest January price increase on record (+2.8%), 2026 is still enjoying its strongest start since 2020.
Prices now sit 0.5% higher than this time last year, and buyer affordability has improved. Average earnings are up 4.7% year-on-year, outpacing cumulative property price growth over the past three years. Mortgage rates are also helping, with the average two-year fixed deal at 4.28%, near its lowest level since September 2022.
However, supply is plentiful. The number of homes for sale is at an 11-year high for this time of year, and roughly a third of listings have already reduced their asking price. In short: confidence is back, but sellers need to be realistic.
RICS – Chartered Surveyor Sentiment
If February’s numbers tell one story, RICS tells the mood behind it — one that’s cautiously improving.
January’s survey showed new buyer enquiries at -15%. This was the least negative reading in several months and a marked improvement from -29% in November. Agreed sales also improved to -9%, the strongest reading since June 2025. Activity remains subdued, but the direction of travel is clear.
Short-term expectations cooled slightly to +4%, reflecting ongoing caution. But over the next twelve months, optimism is building rapidly: +35% expect sales to rise, and +43% expect house prices to increase, the strongest forward-looking reading in a year.
Nationally, house prices remain marginally negative at -10%, but this has steadily improved from -19% in October.
Regional divides remain sharp. Growth continues in Scotland, Northern Ireland and parts of the North, while London and the South East remain weaker. But the broad signal is one of stabilisation.
Zoopla – Housing Market Outlook
Zoopla’s February update points to one of the clearest trends of 2026: sellers are returning in force.
February is on track to record the highest number of new listings in a decade, with supply 6% higher than last year. That gives buyers choice and keeps price growth in check.
Mortgage conditions are also supportive. Average rates for new loans have fallen to their lowest level in four years, with two- and five-year fixes now below 4% for the first time since 2022. While further large drops are unlikely, lender competition remains strong.
Perhaps most striking is affordability. Lenders’ stress rates have fallen from 8.5% to around 6.5%, meaning 40% of homes for sale are now cheaper to buy than rent locally.
As a result, Zoopla expects modest price growth through 2026, with healthy sales but significant variation by local market — making realistic pricing and local advice more important than ever.
Express Index
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