British house asking prices showed almost no movement in February, edging down by just £12 to an average of £368,019, according to Rightmove's latest monthly index. The reading follows a strong 2.8% rise in January and is based on 106,287 properties listed between Jan. 11 and Feb. 7.
Despite the near-flat month, asking prices remain 2.8% above December levels, representing the strongest start to a year since 2020. However, on an annual basis prices were unchanged compared with a year earlier, indicating that year-on-year growth has effectively stalled.
The Rightmove data point to a changing balance of power in Britain's housing market. Improvements in affordability have begun to favor buyers over sellers. Average earnings have risen 4.7% year-on-year, while property prices have only increased by 1.5% cumulatively over the past three years, widening the gap between wages and house price inflation. At the same time, the number of homes available for sale has reached an 11-year high for this time of year.
Mortgage costs are also providing relief to prospective purchasers. Rightmove's tracker shows the average two-year fixed mortgage rate has eased to 4.28% from 4.96% a year ago, translating into savings of about £100 per month for a typical new buyer. Those lower rates are part of a broader retreat from the sharp spike in borrowing costs that followed the mini-Budget crisis in September 2022, despite some recent small upticks in rates.
Colleen Babcock, a property expert at Rightmove, said the flat reading in February should be viewed in the context of January's surge. "Virtually flat prices in February really needs to be viewed alongside what happened in January," she said, noting that activity picked up from Boxing Day after prolonged Budget-related uncertainty and the usual Christmas slowdown.
Babcock attributed January's jump to pent-up seller confidence after months of uncertainty ahead of a late November Budget. By contrast, she said sellers in February were more cautious and appeared to hold onto January's gains rather than push prices higher, at a time when competition is strong and sensitivity to price remains elevated.
Comparisons with last year's market activity are complicated by a stamp duty deadline that ended in March 2025. That deadline inflated early-2025 transaction volumes as buyers rushed to complete purchases ahead of tax increases. Measured against that distortion, the number of newly listed properties is down 1% from a year ago but up 11% compared with two years earlier. Sales agreed are 5% below the year-ago level but 9% higher than two years ago, a pattern that suggests underlying demand remains solid when stripped of the earlier tax-driven spike.
Segmented price movements show differing trends across the market. Properties aimed at first-time buyers rose 0.2% month-on-month to an average of £226,050, but remain 0.4% below their level a year earlier. Mid-market "second-stepper" homes increased 0.7% during the month to £343,603, up 0.8% compared with the same point last year. At the top end, prices slipped 0.2% to £657,604.
Market momentum appears to have slowed in terms of transaction speed and stock handling. The average time to agree a sale has lengthened to 81 days nationally, up from 76 days in December. Meanwhile, estate agents on average are holding 56 properties, a reduction from a peak of 66 in September but still relatively high by historical standards.
Regional divergence is evident in the data. Scotland recorded a monthly increase in asking prices of 4.1%, while London saw a modest monthly decline of 0.2% and a year-on-year fall of 1.1%.
Babcock described 2026 as "shaping up to be a good year to buy," pointing to the strong wage gains over the last three years. "Over the last three years average wages are up by around 17%, significantly outstripping property prices which are up by just 1.5% over the same period," she said.
Lender behavior has also shifted following regulatory changes in 2025 by the Bank of England and the Financial Conduct Authority around loan-to-income caps and stress testing. Those changes have expanded borrowing capacity for some buyers. Several lenders are now offering products that include zero-deposit mortgages or loans up to six times income for eligible borrowers, widening options for potential purchasers.
Local market participants are seeing the effects. Craig Webster, managing director at Tiger Sales & Lettings in Blackpool, said conditions are improving for buyers. "Mortgage rates are trending down, lenders are increasingly competitive and importantly wage growth has outpaced house price growth in recent periods," he said.
Overall, Rightmove's February snapshot portrays a market that eased off the rapid gains recorded in January but remains influenced by stronger wages, falling borrowing costs and increased stock levels. Those factors are combining to give buyers better purchasing conditions than have been evident since 2020, even as annual price growth remains effectively stalled.