Affordability improvements are beginning to support modest house price growth across parts of the UK, particularly in northern regions, as first-time buyers press ahead amid easing rates and rising wages. However, confidence remains fragile; London continues to struggle with affordability, new-build activity is subdued, mortgage rates remain volatile, and long-running issues around flats, construction quality and accountability are weighing on sentiment. Against this backdrop, buyers, sellers and developers are navigating a housing market still searching for stability. Welcome to another UK Property News Recap – 06.02.2026.
Affordability aids house price growth in Northern Regions
According to Nationwide house prices limped forward in January 0.3% after taking a -0.4% tumble in December. First time buyers are pressing ahead buoyed by improved affordability off the back of reduced interest rates and wage rises, making up to close to 55% of transactions.
Affordability across the country generally improved with Northern Ireland being the outlier due to recent house price growth. London benefited the most but remains the least affordable region by a significant margin.
This was echoed in Halifax HPI: January rate sales causing house prices to rise again after taking a step back over Christmas. Northern Ireland and Scotland rose 5.9% and 5.4% respectively while southern regions saw annual falls of 1%.
A fresh start?
New home registrations increased 11% in 2025 overall yet London struggled to get started, registrations falling 27% according to NHBC. Affordability and the general distrust around new build apartments resulted in a 2% annual fall which is problematic for a government keen to get building. The NHBC also registered completions fell 2% annually, potentially due to developers stalling for a more favourable time to market.
One Hyde Park proves sticky for the Candys after their high court loss.
Residents with deep pockets took on the Candys to pay for the remedial work due after the construction company Laing O’Rourke installed pipework incorrectly at One Hyde Park. This is a big win for homeowners who’ve already made a significant loss on their original investment and a huge headache for the Candys who were trying to offload the property.
Covid has long term housing effects
There are now 673,143 homes valued at £1m or more across Great Britain, however 63,500 homes, which ventured across the million pound threshold have been forced to backtrack post their initial Covid surge
Rates creep up
The rate seesaw continues to cause nausea for those buying and remortgaging. The average mortgage rate creeps back up according to Moneyfacts.
Santander launches 2% deposit mortgage
Lender Santander launches “My First Mortgage.” This is designed to
encourage first-time buyers to purchase NEW BUILD HOUSES, by offering a 98% five-year fixed rate mortgage product, with a rate of 5.19% on homes worth up to £500,000. Let’s hope this low deposit offering with a high interest rate, isn’t buyers’ “last mortgage.”
Getting over the flat stigma
Moving on up and out of flats has never been harder. Building more of them and convincing others to join their ranks is equally tricky. The government has a big problem to unpick, ground rent is one small step, one of many that need to follow at pace if any housing target is to be made.
Trekking around London I see an array of apartments in need of repair with no plan in place or with excessive service charges and that’s excluding all the many others with cladding or safety issues. Unearthing the gems is getting harder. Reform is needed not only for those stuck but to provide confidence once again in communal living, build quality and accountability. As is, many are swerving flats in favour of longer term living in the form of houses. Who can blame them, stamp duty is saved from moving up but upkeep costs could be higher over time given homeowners are solely responsible for the building.
Too many have had their head turned by developer incentives, a stamp duty holiday or low interest rates only to now find they are paying the price. This wouldn’t be an issue if construction was better, and maintained.
Rightmove claims February is the best time to sell
It’s that time of year again when Rightmove tries to convince sellers to not wait till spring but get their property on now for a successful sale. I’ll say one thing, we could all do with some better stock, and for sellers less decent competition could prove financially beneficial.
Construction remains divided
Non-residential construction starts continue to build on their numbers while residential development remains at a standstill; waiting for consumer confidence and affordability to improve. Residential construction starts fell by 24% compared with the preceding three months to January and 32% against 2025 figures. At the same time, non-residential project-starts increased by 6% and up 7% on a year ago. This was led by office and industrial growth however infrastructure saw a 40% decline over the winter period. Construction sectors remain cautiously hopeful that things will improve but it will take time and economic consistency.
Meanwhile, according to S&PGlobal construction ratings: activity across the board though down is slowly “working towards” but is some way off “working at.” The only plus side from a reduction in demand is materials have become easier to come by improving turnaround times.
Rates left on ice
The Bank of England voted 5 -4 to hold rates at 3.75% on Thursday. Maintaining the status quo till inflation can demonstrate some consistency. Many are still holding out for further rate cuts before moving on or remortgaging and over the course of the year further cuts will be forthcoming but in the short term a Christmas rate may prove better than last week’s. Alternatively, if time is on your side, the Easter bunny may bring you a treat.
That concludes this week’s UK Property News Recap – 06.02.2026. Any comments or suggestions please get in touch.
