Property market expert, Kate Faulkner, reveals that the latest indices report positive house price activity at the beginning of 2026.
9th Mar 20260 500 4 minutes read Kate Faulkner OBE
So far this year, house price activity and the property market overall looks good – especially for buyers!
Plenty of stock coming onto the market, and that’s good news for all (bar some sellers) because the more properties there are for sale, the more likely buyers will find something they love, and the more people who didn’t think they wanted to move are likely to see a property they would like to move to.
All this helps increase transactions, which are the true lifeblood of the property market.
However, when I wrote this paragraph, a new conflict hadn’t opened up in the Middle East. Obviously devastating for all the innocent lives affected, but also not great news for the property market here.
The one thing that would have improved sales this year was the forecast reduction in interest rates due to the expectation that inflation would fall back to its 2% target.
However, we’ve already seen a spike in oil and gas prices and rumours are now that, depending on how long the war goes on for, general inflation will rise, so interest rates (and mortgage costs) will only fall once this year – not twice as most forecasters predicted.
For now, we’ll have to wait and see and hope very much that the war ends swiftly, for everyone’s sake.
Insights from the property market indicesRightmove
UK house prices stand still in February but still strongest start to a year for prices since 2020.
“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.”
Colleen Babcock, property expert at Rightmove, said:
– Average property prices are the same as a year ago. This is particularly beneficial to first-time buyers saving up their first deposit. – Average earnings are up by 4.7% year-on-year, outpacing the last three years of cumulative property price growth. – The number of homes for sale is at an 11-year high for this time of year, giving buyers more choice and negotiating power. – Lenders are continuing to offer ways for eligible buyers to borrow more. – Average mortgage rates are still near their lowest level since September 2022’s mini-Budget. – Rightmove’s daily tracker shows that the average two-year fixed mortgage rate is now 4.28%, significantly down from the 4.96% figure a year ago.
Nationwide
House price growth edges higher in January
– All parts of the UK, with the exception of Northern Ireland, saw an improvement in affordability over the past year. Northern Ireland experienced a deterioration due to strong house price growth over the past year, with mortgage payments now above the long-run average in the region. – For the second year running, London saw the largest improvement in affordability, reflecting relatively weak house price growth in 2025, solid earnings growth and lower interest rates. Nevertheless, the capital remains the least affordable region by a significant margin (see chart above). – Affordability pressures remain pronounced in the South of England, whilst in the North, Yorkshire & The Humber and Scotland, mortgage payments as a share of take-home pay are slightly below their long-run average. – These regional variations in affordability have led to some stark differences emerging between those who would like to buy and those that can do so.
Nationwide also track and explored transactions by buyer type for 2025.
Robert Gardner, Nationwide’s Chief Economist, said: “Looking across 2025 as whole, total housing market transactions were 10% higher than in 2024. As we explored in our Housing Affordability Report, improved affordability and an easing in credit availability has helped to support first-time buyer activity, with mortgage completions up 18% year on year.
“Home mover transactions involving a mortgage have also recovered over the past year, with activity up 15% year on year.
“There has also been a gradual increase in the number of buy to let purchases involving a mortgage, although activity remains quite subdued compared to historic levels, reflecting the continued headwinds impacting this part of the market. For example, the higher interest rate environment tends to exert more of a drag on landlord demand (rather than owner occupier), while changes to the regulatory environment have also impacted landlord sentiment.
“Cash transactions last year were at a similar level to 2024. In recent years, there had been something of a decline in the share of cash purchases, which accounted for 35% of transactions in 2025, down from a peak of 42% in 2023.”
Halifax
Average UK house price rises at the start of 2026
Amanda Bryden, Head of Mortgages, Halifax, commented:
– The housing market entered 2026 on a steady footing, with average prices rising by +0.7% in January, more than reversing the -0.5% fall seen December. Annual growth also edged higher to +1.0%, pushing the cost of the typical UK home above £300,000 for the first time. – While that’s undoubtedly a milestone figure, and activity levels show a resilient market, affordability remains a challenge for many would-be buyers. – Broader economic conditions continue to provide some support. Wage growth has been outpacing property price inflation since late 2022, steadily improving underlying affordability.
Zoopla
Renewed market momentum fuelled by improving mortgage market
Richard Donnell, Executive Director at Zoopla, observed:
– Strong agreed sale numbers are supported by average mortgage rates dropping below 4%. – 40% of homes for sale are now cheaper to buy with a mortgage than rent, offering an effective hook for capturing first-time buyers. – Sales activity is healthy, but subdued house price inflation at 1.3% requires firm vendor management on pricing strategies. – House price rises are higher than last year in northern England and Scotland, driving regional instruction value. – Price falls have moderated in southern England, bringing much-needed stability to local markets.
RICS
Despite subdued activity, tentative signs are emerging that the market may be turning a corner
Tagshouse prices 9th Mar 20260 500 4 minutes read Kate Faulkner OBE Share Facebook X LinkedIn Share via Email
