UK Property Market Update

The UK housing market is showing signs of stabilisation and measured recovery as we move through February 2026. After a subdued late 2025, buyer interest is gradually strengthening, supply remains elevated, and pricing trends suggest a more balanced environment than the sharp swings seen in recent years. A clear understanding of current pricing, buyer behaviour and regional variations will help sellers position their homes effectively as we approach the spring market peak.

 

Market Conditions and Price Trends

In early 2026, average UK house prices are holding firm with modest gains rather than dramatic swings, reflecting broader economic steadiness and improved affordability. According to the latest indexes, annual price growth is modest — around 1‑2% — with some indicators showing average values above £300,000 by certain measures.

This relative price stability benefits sellers, as realistic pricing is now more important than timing market highs. Overpriced homes are increasingly likely to see limited interest and multiple reductions, while properties aligned with local demand norms are attracting genuine buyer enquiries and offers.

 

Buyer Activity Strengthens After Winter

After the seasonal slowdown in December and January, buyer activity in February is noticeably picking up. More prospective purchasers have been attending viewings, and enquiries are increasing as buyers who researched options online earlier in the year move toward viewing and making offers. Mortgage approvals have remained broadly resilient, supporting sustained buyer participation.

First‑time buyers continue to be a significant force in the market, supported by improved affordability as earnings growth outpaces modest house price increases. However, elevated borrowing costs compared with the ultra‑low rate era mean buyers are being more cautious and selective.

 

Regional Variations Remain Marked

One of the defining features of the current market is regional divergence. More affordable markets in the North and Midlands are seeing stronger relative activity and price resilience, while the South East and London remain price‑sensitive with slower transaction rates.

Local employment trends, transport links, and housing supply dynamics are major drivers of these differences. Sellers in areas with strong demand tend to see quicker journeys from listing to accepted offer, whereas those in softer markets may need longer marketing periods and stronger pricing strategies.

 

Property Types in Demand

Family homes with practical layouts — especially those suitable for flexible working — remain a key focus for buyers. Outdoor space, even modest gardens or patios, continues to resonate with purchasers prioritising lifestyle and long‑term comfort.

Energy performance also plays a larger role in buyer decisions, as higher EPC‑rated properties attract more interest and tend to secure quicker offers than those with poor energy efficiency.

 

Mortgages and Affordability

Mortgage conditions have eased slightly from 2025 highs, with some lenders offering deals that support better affordability. Although rates are still higher than the historic lows seen earlier in the decade, the trend toward lower borrowing costs is helping to broaden the pool of active buyers.

Buyers are more focused on value and long‑term costs than in past cycles, meaning sellers need pricing strategies that reflect genuine market value to convert interest into offers.

 

Marketing That Works in Today’s Market

With buyer searches intensifying ahead of spring, now is a valuable time to list. High‑quality photography and compelling property descriptions remain essential — many buyers make early decisions based on online presentation alone.

Accurate, honest descriptions reduce wasted viewings and help attract seriously interested buyers.

 

Pricing and Preparation Tips for Sellers

February buyers are informed and comparative — they often view multiple properties before making commitments. Properties priced realistically from the beginning tend to achieve offers within typical marketing timeframes, while overly optimistic pricing often leads to extended listings and eventual reductions. A combination of multiple agent valuations and robust local data will help set realistic asking prices.

Ahead of viewings, make sure homes are clean, well‑lit, and well‑presented — especially important during the colder, darker late‑winter months.

 

Looking Ahead: Spring Market Prospects

The 2026 spring market is shaping up to be competitive but measured. Properties that are positioned appropriately — balancing pricing with presentation and aligning with local buyer preferences — are likely to navigate smoothly toward offers and sales in the coming weeks.