AVERAGE UK house prices increased by 1.2%, to £268,000, in the 12 months to February 2026, up from 1% in the 12 months to January 2026, official data published today shows.
Experts said the data has yet to reflect the impact of the war in the Middle East but added that current market conditions are a perfect window of opportunity for aspiring buyers to secure a bargain.
Average house prices increased to £290,000 (0.8%) in England, £210,000 (2.5%) in Wales, and £187,000 (2.3%) in Scotland, in the 12 months to February 2026.
Meanwhile, average UK monthly private rents increased by 3.4%, to £1,377, in the 12 months to March 2026, down from 3.6% the 12 months to February 2026.
Average rents increased to £1,434 (3.4%) in England, £830 (4.8%) in Wales, and £1,022 (2.1%) in Scotland, in the 12 months to March 2026.
In Northern Ireland, average rents increased to £880 (5.0%), in the 12 months to January 2026.
In England, private rents annual inflation was highest in the North East (6.5%), and lowest in London (1.7%), in the 12 months to March 2026.
Uncertainty
Andrew Montlake, CEO at London-based Coreco, said: “Prices rose slightly compared to the previous month but the impact of the war has yet to feed through.
“When you factor in the events of March and April, and how the war in the Middle East has impacted mortgage rates, the performance of the property market in the very early stages of the year now feels slightly outdated.
“Yes, some lenders are now starting to trim their rates but there is still a lot of uncertainty — and sentiment is everything in the property market.”
Different scenario
Daniel Hobbs, CEO at Rayleigh-based New Leaf Distribution, also said the house price data has yet to fully reflect the war in the Middle East, which has changed the entire outlook of the property market for 2026.
He continued: “It was only a couple of months or so ago that the Bank of England was predicting inflation would be back at around target in the spring, and more interest rate cuts were incoming. This would have ignited the market and seen demand for property soar.
“But the war in the Middle East means the UK economy is now facing an entirely different scenario and house price growth looks set to be muted at best due to far higher borrowing rates. Against such a volatile economic backdrop, many people will likely choose to sit on their hands.”
Opportunity
But Babek Ismayil, CEO at homebuying platform OneDome, said the uncertainty offers a strong buying opportunity for those seeking to get onto the ladder.
He said: “Mortgage rates are far higher than what they were at the end of February, before the war began, but the uncertainty resulting from the war has created a strong environment for buyers to negotiate hard with sellers and snap up property at a much reduced price.
“People need to remember that securing a competitive price for a property can often mitigate the impact of higher mortgage rates, which people can remortgage off in the years ahead anyway.”
Shaun Sturgess, Director at Swansea-based Sturgess Mortgage Solutions, agreed: “The one silver lining of the current market, where confidence is low, is that it is a great chance for first-time buyers to secure some fantastic bargains as they hold all the cards right now.”
Photo by Antonina Bukowska on Unsplash
