According to the latest data, UK house prices rose 1.2% in the year to February, up from slightly more than 1% in January. National Statistical Office.
The data also point to a continued slowdown in rental growth. The average UK private rent rose 3.4% to £1,377 per calendar month (pcm) in the 12 months to March 2026, down from 3.6% in the year to February, the weakest annual increase in four years.
Across the UK, average rents were £1,434 per cm in England, £830 per cm in Wales, £1022 per cm in Scotland and £880 per cm in Northern Ireland. Regional variation remained wide, with annual rent inflation highest in the North East at 6.5% and lowest in London at 1.7%.
In terms of sales, average UK house prices reached £268,000 in the 12 months to February 2026. Prices averaged £290,000 in England, £210,000 in Wales and £187,000 in Scotland.
Industry response:
Nathan Emerson, CEO of PropertyMark: “Although it is encouraging to see growth in the housing market, we are at a stage where it is more difficult to predict the coming months from an affordability perspective.
“With the broader picture regarding inflation being too complex to fully visualize, the Bank of England will likely choose to approach the situation with extreme caution as they make their next base rate decision at the end of the month.
“In a worst-case scenario, some people could face additional pressure on their household finances from three different angles in the coming months. Inflation could push up prices on major household purchases like the weekly shop. Base rates could also see a rise, which would impact tracker products as well as those taking up new mortgage deals, and we could also see potential fluctuations in energy prices.
“We may see a growing need for a cautious and thoughtful approach to the domestic budget, particularly if the impact of global unrest continues to impact our economy domestically.”
“Rising rental prices reflect the chronic imbalance between supply and demand in the private rented sector. Letting agents across the UK are consistently reporting high tenant demand coupled with a shortage of available properties, which is inevitably putting upward pressure on rents.
“PropertyMark’s latest member data shows that an average of seven applicants are registering per available property. This is not a short-term trend; it reflects years of underinvestment in the sector and increasing regulatory pressures, which are discouraging landlords from entering or remaining in the market.
“If rents are to stabilise, measures to support supply must be prioritized, including support for landlords and a regulatory environment that encourages long-term investment. Without this, affordability challenges for tenants will only intensify.”
Richard Donnell, Executive Director of Research at Zoopla: “The housing market remains stable despite events in the Middle East – house price inflation is slower than income which is helping affordability. Data from Zoopla shows buyers are back in the market after Easter and sales remain agreed as committed buyers move in. Low mortgage rates will support activity in the coming months, which is good news for record numbers of sellers, but it is still a buyers’ market. This means sellers have to One has to be realistic on prices, which is where they currently are, explaining why prices are only rising 1.2%.
“Rent inflation has slowed and this will be welcome news for renters. For landlords, a rent increase of more than 3% is positive, but for some it may not be enough to offset the additional costs and regulation from the Tenants’ Rights Act starting on May 1. Underinvestment in increasing the stock of rented homes is supporting rents rising faster than home prices. ” “There is a need for policies to increase the supply of rental housing to ease the pressure.”
James Evans, CEO of Douglas & Gordon: “The latest ONS House Price Index data shows a small increase in values, which matches what we are seeing across London. The market is broadly stable, with modest growth concentrated in areas where supply is tight and right-priced homes still attract competition.
“Nevertheless, these figures reflect house prices up to February, well before the escalation of the Middle East conflict and recent changes in mortgage pricing. As such, this trend may prove difficult to continue in the coming months, particularly if high borrowing costs persist.
“Nevertheless, this growth is a sign that demand has not disappeared. With diminishing hopes of relief through rate cuts or changes to stamp duty, more movers are accepting that waiting for the right circumstances also means putting life on hold. For many, decisions are being driven by jobs and family needs, and buyers with competitive mortgage offers will be willing to move while these deals are still in the works.
“The encouraging thing is that it’s starting to look like a market that rewards good preparation and savvy pricing. Even amid widespread uncertainty, there are still buyers who are ready to take action when they find the right home.”
Jeremy Leaf, North London estate agent: “The most comprehensive of all rental market surveys shows that rents are still rising, but not as fast as before, partly due to concerns about the impact of inflation on affordability.
“However, if the stock shortage had not been supported, rents could have fallen further, exacerbated by landlords leaving the sector ahead of the introduction of the new Tenant Rights Act at the beginning of May.”
Verona Frankish, CEO of Yopa: “Although the rate of house price growth remains quite modest, the fact that prices are still moving in the right direction shows that the market remains strong despite the difficult economic backdrop.
“Buyers have spent the last year adapting to a world of higher borrowing costs and greater uncertainty and as a result, we are now seeing a more stable and sustainable market emerging, based on realism rather than rapid price inflation.”
Benham & Reeves director Mark von Grundher: “The latest data shows that the UK housing market remains remarkably resilient, with house prices remaining stable despite renewed pressure on mortgage affordability and macroeconomic uncertainty.
“London is lagging behind the rest of the UK with a 3.3% year-on-year decline, but the capital remains a market of huge value and importance as the destination of choice for both domestic and international home buyers.”
Tom Bill, head of UK residential research at Knight Frank: “As a result of the Middle East conflict, mortgage rates have soared, sentiment has been hit and there is speculation about how the government will respond to the economic shock. This hat-trick of headwinds means house prices will come under pressure this year. The overall impact will depend on how long the conflict lasts and the extent to which it escalates. Affordable house prices remain under the greatest pressure, which is why London and south-east England are lagging behind the rest of the country.”
“Although rental price growth is slowing, the Tenant Rights Act could put upward pressure on rents as landlords reduce the higher risk of repossessing their properties or guaranteed rental income. Any further reduction in supply due to landlord sales could also increase financial pressure on tenants.”