UK House Prices Show Signs of Resilience in 2026: A Year of Hope

The UK housing market is poised for a promising year as recent reports indicate a resilient start to 2026, particularly in house prices. Despite a modest decline in February, the average house price remains significantly higher than it was just a year ago, reflecting an underlying confidence among buyers.

Positive Market Indicators

According to Rightmove’s latest House Price Index, the average house price in the UK stands at £368,019, a slight decrease of just £12 from January. However, this figure is still 2.8% higher than it was in December 2025, signaling that the market is maintaining its strength despite some fluctuations. The increase in average earnings, rising by 4.7% year-on-year, is outpacing historical property price growth, giving buyers the financial ability to engage in the market with renewed optimism.

A Surge in Available Listings

One of the standout features of the current property landscape is the abundance of homes for sale, which is at an 11-year high for this time of year. This increased choice is expected to stimulate buyer activity as potential homeowners are flooded with options. Simultaneously, mortgage rates are nearing their lowest since the economic turmoil following the mini-Budget in September 2022, with average two-year fixed rates now resting at 4.28%—a significant drop from the previous year. These circumstances create a favorable environment for both buyers and sellers, fostering a vibrant market atmosphere.

A Bright Future Ahead

Experts, including Colleen Babcock from Rightmove, predict an improved year for the housing market, driven by increased activity and buyer confidence. The impending "Boxing Day Bounce," an annual surge in home-moving activities following the holiday season, is anticipated to further invigorate the market. With the potential for a more stable economic landscape, 2026 could witness a rebound in house prices and enhanced engagement among buyers and sellers alike.

This developing situation illustrates a shift towards recovery in the housing sector, suggesting that stakeholders should stay optimistic as we move forward into the year.