Fine and Country National Sales Report February 2026

£786,000 £1,119,615 -8.6%

£623 £40.9bn 15,405

Source: Dataloft by PriceHubble, Bank of England, HMRC, ONS

PICK UP IN JANUARY MOMENTUM

The economic backdrop points to a solid year for the housing market. Mortgage rates have stabilised, transactions remained strong throughout 2025, and improving sentiment in early 2026 should support activity levels.

UPTICK IN INFLATION

Inflation rose for the first time in five months, reaching 3.4% in December, up from 3.2% in November, driven by higher air fares and tobacco prices¹. This uptick is expected to be temporary but nevertheless it makes it more unlikely the Bank of England will reduce rates early in the year. Indeed, they kept interest rates at their current level of 3.75% in the first meeting of 2026 (held on 5th February). One or potentially two further 0.25 percentage point cuts are expected later in the year. Mortgage rates have stabilised at lower levels than last year, and the mortgage market remains highly competitive, offering more attractive deals for home buyers, particularly those with larger deposits. The average five-year fixed rate stood at 4.0% at the end of 2025, down from 4.4% a year earlier, while the average two-year fixed rate fell to 4.0% from 4.6%2

SALES VOLUMES

There were 100,440 transactions in December, representing a 5% year-on-year increase3 . Overall, transaction activity remained strong throughout 2025, with 1.2 million transactions recorded. This is 11% higher than in 2024 and over 3% higher than pre-pandemic 2019. With interest rates on the overall downward trend and continued wage growth improving mortgage affordability, this steady momentum is expected to continue into 2026. In the latest RICS survey, a net balance of +34% of respondents anticipate that sales volumes will pick up over the year ahead, the strongest reading since the end of 2024 4

REBOUND

Mortgage approvals totalled 61,013 in December, down 8% year-on-year, partly reflective of the surge in buyer activity ahead of the stamp duty holiday deadline this time last year.

Despite the decline, approvals remain significantly above the levels seen at the end of 2023 (when mortgage approvals were close to 52,000)5 . Several housing indicators ended 2025 on a slightly quieter note, as many prospective buyers postponed moving decisions amid Budget uncertainty and the usual seasonal slowdown. Activity rebounded in January, with sentiment improving following confirmation of the Budget details, the average asking price increased to £368,031, up 2.8% from December, marking the largest January rise on record6

PRICE METRICS

Looking at achieved prices, then the average UK house prices stood at £271,188 in November, 2.5% higher than a year earlier. Terraced homes saw the strongest annual growth at 3.5%, followed by semi-detached properties (3.4%), detached homes (2.6%), with no price growth evident on flats7. This weaker performance for flats comes alongside a notable rise in supply: in December 2025, the number of flats available for sale increased by 24% year-on-year, compared with a 15% rise for houses8 . This may reflect shifting buyer preferences (households continuing to prioritise larger homes and access to outdoor space) but could also represent BTL investors selling out in some locations.

In England and Wales, the average price of a prime market property is £1,119,615 which is -8.6% below this time last year. Prices have softened in most regions for prime markets, most notably London, the only regions to see increases were Scotland and the North West (albeit marginal gains). Looking ahead, UK house prices are forecast to rise at a moderate pace of 3.3% in 2026, with growth tempered by elevated levels of supply 9

¹ONS, ²Bank of England, 3 HMRC, 4RICS, 5Bank of England, 6Rightmove, 7ONS UK HPI, 8PriceHubble analysis using Information Works and Land Registry data (England & Wales), 9HM Treasury (average of independent economic forecasts)

£550,000

£762,609 +0.4%

£353

£539,000

£727,338 +0.7%

£380

£582,000

£757,875 -1.5%

£381

£481,000

£622,837 -0.9%

£332

£724,000

£943,902 -7.3%

£463

£909,000

£1,261,724 -7.9%

£560

£425,000

£558,003 -0.4%

£300

£511,000

£677,220 -1.2%

£351

£527,000

£685,510 -2.9%

£332

£799,000

£1,055,882 -5.7%

£523

£1,450,000

£2,264,702 -16%

£1,136

Source:

£282,148

£786,000

£1,119,615

£231,905

£707,000

£1,033,686

Source: Dataloft by PriceHubble, Land Registry.

£277,526

£658,000

£889,673

£432,908

£999,000

£1,440,658

£228,119

£662,000

£995,378

£293,565 £800,000 £1,126,621