The newly published house price index figures suggest challenges ahead for the UK housing market, according to industry expert. The figures, released on Wednesday, revealed static growth in February.
According to the data, average UK house prices rose 1.2% in the year to February 2026. The average price of a property in the UK as of February was £268,000, the same as the month before.
This has highlighted pre-existing weakness in the market before the onset of the Iran war, according to a senior figure at consulting firm RSM UK.
“Today’s house price index figures show a sustained pattern of static growth over the last three years, a concerning picture given wage inflation over that period,” said Stacy Eden, partner and national head of real estate at RSM UK.
“This places the market in a challenging position for navigating the year ahead, with mortgage rates on the rise and the latest inflation figures at 3.3%.”
Eden noted that considering the modest economic growth expected in the UK for the coming year and slowing wage growth eaten away by inflation, it is no wonder that buyer demand is waning. They pointed out that in the capital the situation is particularly concerning, with a monthly fall of 1.9% and an annual fall of 3.3%, London is most impacted by the high levels of Stamp Duty Land Tax (SDLT) and static real wages due to its higher house prices.
“London is also a more international market compared to other UK regions, and therefore more sensitive to challenges damaging international investment such as high levels of taxation, high regulation, and UK economic volatility,” Eden said.
“Whilst the long-term impact of the recent geopolitical volatility remains to be seen, shorter-term pressures are expected to persist in the coming months, increasing desire across the market for much-needed measures to restimulate the market, such as Stamp Duty reforms, or even further government support for first time buyers.”