Steady Foundations and Growing Ambition, February 2026 UK Property Market
Hello everyone, it’s great to be back with your monthly update. As we move through February 2026, the property market feels noticeably different than it did this time last year. There is a sense of "quiet confidence" beginning to take root across the country, driven by more predictable economic conditions and a clearer path forward for both buyers and sellers.
Nationally, the headline figure is one of steady growth. The UK average house price currently stands at £287,528, representing an annual increase of 2.1%. While we aren't seeing the frantic double-digit spikes of years past, this moderate growth is actually a sign of a much healthier, more sustainable market. It suggests that while prices are firm, they aren't outstripping what people can actually afford to pay.
A big part of this stability stems from the Bank of England. The base rate has remained at 3.75% since it was last changed on 18 December 2025. This pause in hikes has been a breath of fresh air for the mortgage market. Because lenders now have a clearer idea of the long-term interest rate landscape, we are seeing more competitive fixed-rate products entering the fray.
This stability is clearly reflected in buyer behaviour. Monthly mortgage approvals have hit 61,000, which is a strong indicator that confidence is returning. People are no longer sitting on their hands waiting for "the right time"; they are making moves based on their personal needs, backed by the knowledge that their monthly outgoings are unlikely to face sudden shocks. Furthermore, with annual earnings growth at 4.8% currently outpacing CPI inflation at 3.6%, the "affordability gap" is slowly starting to bridge, giving households a little more breathing room.
From National Trends to the CM11 1 Postcode
You might be wondering how these big-picture national statistics impact us locally. While I always look at the macro data first, it’s important to remember that these trends eventually trickle down to our local streets in CM11 1.
When we see mortgage approvals rising nationally, it signals a broader pool of buyers who are ready and able to move. In an area like CM11 1, this translates to increased activity during viewings and more robust offers for local sellers. Similarly, the Bank of England's decision to hold the base rate at 3.75% since 18 December 2025 affects mortgage affordability right here in CM11 1, allowing local families to plan their next move with much more certainty than they could twelve months ago.
Looking Ahead
As we look toward the spring, the trend is one of resilience. Since September 2020, we’ve seen the national average price climb from £238,111 to today’s £287,528. This long-term growth reminds us that property remains a solid investment over time. For the remainder of 2026, I expect to see this "steady as she goes" momentum continue, with the market supported by strong employment and a more settled financial environment.
Whether you are looking to step onto the ladder or find your forever home, the current landscape offers a level of predictability that is very welcome indeed.