The average price of a house in the UK increased by 1.2% to £268,000 in the 12 months to February 2026, up from 1% in the 12 months to January 2026, according to official data.
Regional House Price Variations
UK house prices rose to £290,000 (0.8%) in England, £210,000 (2.5%) in Wales, and £187,000 (2.3%) in Scotland during the same period. These figures highlight regional disparities in property market performance.
Private Rent Increases
Average UK monthly private rents increased by 3.4% to £1,377 in the 12 months to March 2026, a slight decrease from 3.6% in the 12 months to February 2026. Regional rent rises included £1,434 (3.4%) in England, £830 (4.8%) in Wales, and £1,022 (2.1%) in Scotland. In Northern Ireland, average rents rose to £880 (5.0%) in the 12 months to January 2026.
Highest and Lowest Rent Inflation
In England, private rent annual inflation was highest in the North East at 6.5% and lowest in London at 1.7% in the 12 months to March 2026, indicating significant regional differences.
Expert Commentary
Andrew Montlake, CEO of London-based Coreco, commented: "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impacted mortgage rates, the performance of the property market in the very early stages of the year now feels slightly outdated.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."
Daniel Hobbs, CEO of Rayleigh-based New Leaf Distribution, added: "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."
