Average Price
The average asking price of newly listed homes for sale stands at £368,019. Emphasising how large January’s price increase was, the first two months of 2026 combined are still the strongest start to a year for prices since 2020, up by 2.8% since December. Price growth at the start of this year has been front-loaded more than usual due to an early-year boost in buyer and seller confidence as Budget uncertainty ended.
Supply & Demand
With the peak spring selling season approaching, buying conditions for 2026 movers are favourable. February’s average price standstill means that the average asking price is the same as a year ago, which is particularly beneficial to first-time buyers who are saving up for their first deposit. Average earnings have risen by 4.7% annually, comfortably outpacing the +1.5% total property price growth over the past three years. Competition among sellers remains at an eleven-year high, as the high number of homes for sale continues to benefit buyers, giving them more choice and more power to negotiate.
Interest Rates
The Financial Conduct Authority is currently conducting a mortgage market review, which could lead to changes for the mortgage market. Ahead of that review, both the Bank of England and the regulator introduced measures in 2025 to give lenders greater flexibility on Loan-to-Income limits and stress testing. Lenders are also continuing to look at innovative ways to help buyers, including through very small or no deposit mortgages, or allowing some eligible borrowers to access up to six times their income.
Mortgage rates remain close to their lowest levels since before September 2022’s mini-Budget, despite small increases in recent weeks, also supporting overall affordability. Rightmove’s daily mortgage tracker shows that the average two-year fixed mortgage rate is now 4.28%, significantly down from 4.96% at this time last year. This yearon-year drop in rates is saving typical new buyers around £100 on monthly mortgage payments.
The current base rate set by the Bank of England stands at 3.75%, with the next meeting due on the 19th of March.
Regional Trends: North East
The average price for homes in the North East is £192,264 with a 2.4% month-on-month decrease and a 1.3% increase since the same period last year. On average, it takes 67 days to sell a property in the North East region.
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Source: Rightmove
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