House price inflation levelled off in February following January’s record start to the year, according to Rightmove. While asking prices dipped marginally month-on-month, the market remains stronger than late 2025, supported by improved affordability, falling mortgage rates and rising wage growth. Increased housing supply is giving buyers more choice, contributing to short-term price stability.
- The average asking price of newly-listed homes fell by £12 in February
- Average prices are 2.8% higher than in December 2025
- The number of homes for sale is at its highest level for this time of year in over a decade
- The average two-year fixed mortgage rate is 4.28%, down from 4.96% in February 2025
- Average earnings have risen 4.7% year-on-year
- Some lenders are offering borrowing of up to six times income and reduced deposit requirements
Original article source: Forbes Advisor UK
A pause in price growth after January’s surge should not be mistaken for weakness. What we are seeing is a market adjusting to greater supply and improved affordability – both of which are constructive foundations for sustained activity through 2026.
The increase in available homes is particularly significant. When supply reaches its highest seasonal level in more than a decade, buyers naturally become more selective. That keeps short-term price growth in check, but it also signals confidence among sellers. More stock coming forward reflects belief in market stability.
Affordability metrics are quietly strengthening. Wage growth has materially outpaced property price growth over the past three years, and mortgage rates have eased back towards their lowest levels since late 2022. Combined with lenders offering higher income multiples and lower deposit thresholds, borrowing conditions are more supportive than they were this time last year.
This matters for first-time buyers and long-term investors alike. A period where prices stabilise while earnings rise gradually restores purchasing power. That recalibration creates healthier entry points and reduces speculative volatility.
A stable pricing environment alongside improving lending conditions provides clarity. It becomes easier to underwrite investments when financing costs are predictable and price growth is steady rather than erratic.
There is also a seasonal dynamic at play. February often represents a transitional window before the spring market gathers momentum. Sellers pricing realistically and buyers acting decisively tend to transact well in this phase.
