Property Market Update: February 2026

Welcome to the February edition of the Property Market Report. We’ve rounded up the latest January reads from Halifax, Nationwide, Rightmove, Zoopla and Moneyfacts, alongside key signals from the Bank of England, to give you a clear view of how the market started 2026 - and what it means for the weeks ahead.

House prices bounced back after Christmas, taking Halifax’ “typical home” above £300,000

Halifax reports the average UK house price hit £300,077 in January, up +0.7% on the month and +1.0% year-on-year - more than reversing December’s dip. Nationwide also shows a gentle improvement, with prices up +0.3% month-on-month and +1.0% year-on-year.

The New Year reset delivered a record January jump in asking prices - and a demand surge

Rightmove recorded the largest January asking-price increase on record, with the average new seller asking price rising to £368,031 (+2.8% m/m, +0.5% y/y). Buyer demand jumped 57% in the two weeks after Christmas compared with the two weeks before - a strong early signal for the spring market.

Mortgage rates stayed under 5% and product choice hit the highest level since 2007

Moneyfacts says the average two-year fixed rate started January at 4.83%, with five-year fixes at 4.91% and the overall Moneyfacts Average Mortgage Rate at 4.87%. Borrowers also had 7,158 mortgage options to choose from (the highest since October 2007), including near 18-year highs in deal availability at 90% and 95% LTV.

More buyers are returning - but they have more choice than in years

Zoopla reports buyer demand at the start of 2026 is broadly in line with 2024, though still 9% lower than the stamp-duty-rush start to 2025. At the same time, housing supply is rising: total homes for sale are 6% higher year-on-year and the average agent is marketing 34 properties, the highest level in 8 years - which keeps the market competitive and price-sensitive.

The North–South divide remains the big underlying theme

Zoopla’s latest read shows price growth over 2025 was strongest in more affordable areas (e.g., North West +3.5%, Scotland +2.9%), while London fell -0.7% and the South East/South West dipped -0.1%. For movers, it’s a reminder that local supply and affordability now matter more than national averages when setting price expectations.