The UK housing market has started 2026 with fresh energy. After a slow and uncertain period in 2025, things are now looking more stable. Mortgage rates are lower. More homes are coming onto the market. Buyers are returning. Sellers are feeling more confident.
But what does this really mean for you?
Are house prices going up fast again?
Is this the right time to buy?
Should sellers expect quick sales?
In this detailed February 2026 House Price Index update, we explain everything in simple English so anyone can understand what is happening in the UK property market.
Average UK House Prices in February 2026
The average house price in the UK is now £269,900.
Over the past 12 months, prices have increased by 1.3%. This is steady growth, but it is not a price boom. In fact, last year the growth rate was 1.8%, so price growth has slowed slightly.
This shows that the market is stable, not overheating.
Property Prices by Type
Different types of homes are performing differently:
- Flats and maisonettes: £191,500 (down 1.3%)
- Terraced houses: £240,100 (up 1.9%)
- Semi-detached houses: £278,800 (up 2.7%)
- Detached houses: £453,900 (up 1.6%)
Semi-detached homes are seeing the strongest growth. Flats are still under pressure, especially in big cities.
This data comes from the latest report by Zoopla, which tracks real sold prices, not just asking prices.
Why Is the Market Improving in 2026?
There are three main reasons:
1. Mortgage Rates Are Lower
Mortgage rates have fallen to their lowest level in four years. Both 2-year and 5-year fixed deals are now below 4% for many buyers.
This makes monthly payments more affordable.
Lower rates are possible because the Bank of England has reduced the base rate and may cut it again later this year.
However, experts believe mortgage rates may not fall much further. Buyers should not expect huge drops.
2. Better Access to Mortgages
Banks are now testing buyers at a lower “stress rate.”
Last year, lenders checked if buyers could afford an 8.5% rate.
Now, many are testing at 6.5%.
This small change makes a big difference.
It means more people qualify for mortgages. First-time buyers especially benefit from this change.
3. Strong Sales Activity
The number of agreed sales has increased sharply in early 2026.
Even though sales are 3% lower than the very strong start to 2025, February 2026 is still one of the busiest February months in the last decade.
This shows confidence is returning.
More Sellers Are Entering the Market
February 2026 is seeing a large increase in new listings.
In fact, this could be the highest February for new listings in 10 years.
There are already 6% more homes for sale than a year ago.
This is important.
When more homes are available:
- Buyers get more choice.
- Sellers face more competition.
- Prices grow more slowly.
This is one reason why house price growth remains modest.
Is It Now Cheaper to Buy Than Rent?
One of the biggest changes in 2026 is affordability compared to renting.
Around 40% of homes currently for sale are cheaper to buy with a mortgage than to rent locally.
Last year, only 25% of homes were cheaper to buy.
That is a big improvement.
This comparison assumes:
- 20% deposit
- 30-year mortgage
- 6.5% stress test rate
Lower mortgage testing has improved affordability for many buyers.
Regional House Price Trends in 2026
Not all parts of the UK are performing the same.
Northern England and Scotland Are Strong
House prices are rising faster in:
- North West
- North East
- Scotland
- Northern Ireland
These areas are more affordable. There are also fewer homes available, which pushes prices up.
In some parts of the North East and Scotland, more than half of homes are cheaper to buy than rent.
Southern England Is Slower
In southern regions, especially London and parts of the Midlands:
- House prices are flat over the last 12 months.
- Growth is weak.
- More homes are available.
- Stamp duty costs are higher.
High prices and higher stamp duty are reducing demand.
Some southern areas have up to 16% more homes for sale compared to last year. This gives buyers more power to negotiate.
What This Means for Buyers in 2026
If you are planning to buy, here is what you should know:
Good News for Buyers
- Mortgage rates are lower.
- More homes are available.
- Price growth is slow.
- Affordability has improved.
This means buyers are in a stronger position than in 2023 or 2024.
But Be Careful
Rates may not fall much further. If you wait too long, competition could increase later in the year.
It is wise to:
- Compare mortgage deals carefully.
- Budget for stamp duty.
- Think long-term.
What This Means for Sellers in 2026
Sellers must understand that the market is more balanced now.
This is not a fast price boom.
Sellers Should:
- Price realistically.
- Check local competition.
- Be prepared to negotiate.
- Make homes look attractive and well-presented.
Overpricing may lead to long delays.
In northern regions, sellers may still see solid price growth. In southern England, pricing carefully is very important.
Are House Prices Going to Crash?
Many people still ask this question.
Based on current data, a crash looks unlikely.
Why?
- Earnings have grown faster than house prices for 3 years.
- Mortgage rates are lower.
- Sales activity is healthy.
- There is no sign of forced selling.
Instead of a crash, experts expect slow and steady growth.
What Could Slow the Market?
There are still some risks:
- If inflation rises again.
- If the Bank of England increases rates unexpectedly.
- If unemployment increases.
- If global economic problems affect confidence.
However, at the moment, the market looks stable.
UK Housing Market Forecast for 2026
Most property analysts expect:
- House price growth between 1% and 3%.
- Stronger growth in northern regions.
- Flat prices in southern England.
- Healthy but not booming sales levels.
This means 2026 may be a year of balance.
Not too hot. Not too cold.
Just steady.
Why a Balanced Market Is Good
A balanced housing market is good for everyone:
Buyers do not feel rushed.
Sellers can still achieve fair prices.
Banks lend responsibly.
Prices grow in a healthy way.
After years of big swings, stability is welcome.
Frequently Asked Questions (FAQ)
Are UK house prices rising in 2026?
Yes, but slowly. Prices are up 1.3% year-on-year.
Is it a good time to buy a house?
For many buyers, yes. Mortgage rates are lower and there is more choice.
Are mortgage rates going to fall more?
They may fall slightly, but big drops are unlikely.
Which regions are growing fastest?
The North West, North East, Scotland, and Northern Ireland.
Are house prices falling anywhere?
Flats in some areas are still under pressure, especially in cities.
Final Thoughts: What Should You Do Now?
The UK housing market in February 2026 is showing signs of stability and quiet confidence.
Mortgage rates are the lowest in four years. More sellers are entering the market. Buyers have more options. Price growth is modest but positive.
This is not a boom year. It is a normal year.
If you are buying, focus on affordability and long-term plans.
If you are selling, focus on realistic pricing and good presentation.
Every local market is different. Speaking to experienced local estate agents can help you understand what is happening in your specific area.
The housing market is moving forward steadily in 2026 — and for many people, that is exactly what it needed.
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