The average asking price of newly listed homes for sale is virtually flat this month, falling by just £12 (-0.0%) to £368,019, the latest Rightmove data shows.
Despite the standstill in prices in February, January’s record asking price increase for the time of year means that it is still the strongest start to a year for asking prices since 2020, with prices up by 2.8% since December.
Price growth at the start of this year has been front loaded more than usual due to an early-year boost in buyer and seller confidence as Budget uncertainty ended.
This is supported by Rightmove’s monthly confidence tracker, which shows that net confidence among buyers and sellers in January returned to its highest level since September 2025.
In February, January’s price gains have held, but new sellers have refrained from further increases to prices as market realities set in. Competition among sellers remains at an eleven year high, and buying activity is lower than at this time in 2025, after last year’s early rush to complete purchases before stamp duty charges rose in England.
What’s happening with market activity?
Market activity is difficult to compare with this time last year, as the looming stamp duty deadline at the end of March in England was still affecting overall averages last year. Some hopeful movers at this time last year were continuing to try to beat the odds by securing a new home and completing the purchase before higher taxes took effect, particularly in the more expensive south of England.
Rightmove says current trends look stronger when compared with 2024. The number of newly listed properties for sale is just below this time last year (-1%) but 11% higher than two years ago. Similarly, the number of sales agreed is 5% below this time in 2025 but is 9% higher than at this time in 2024.
With the peak spring selling season approaching, buying conditions for 2026 movers are favourable. February’s average price standstill means that the average asking price is the same as a year ago, which is particularly beneficial to first-time buyers who are saving up for their first deposit. Average earnings have risen by 4.7% annually, comfortably outpacing the 1.5% total property price growth over the past three years.
Meanwhile the high number of homes for sale also continues to benefit buyers, giving them more choice and more power to negotiate.
Colleen Babcock, property expert at Rightmove, commented: “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. There are still lots of homes for sale, and buying activity isn’t as strong as this time last year, when many buyers were rushing to move before the stamp duty increase in England. So in February, sellers have taken a more cautious approach by holding onto January’s gains rather than pushing prices higher, at a time when competition is high and the market is still very price-sensitive.
“2026 is shaping up to be a good year to buy. 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. A more favourable mortgage rate and lending environment are both also helping to improve buyer affordability. For those who are ready to move soon, February could offer a useful window of opportunity to act before the peak spring selling season, when prices usually rise.”
