Housing Market Update - February 2026
As we enter the new year, the UK economy remains in a fragile state; while November's 0.3% GDP growth provided a modest boost, this is tempered by a rise in inflation to 3.4% and a four-year unemployment high of 5.1%.
We are seeing a distinct divergence between a resilient services sector and a persistent slump in construction, fuelled by hiring hesitancy and high input costs.
Despite a stagnant housing market in late 2025 (largely due to Budget uncertainty but not helped by the usual end of year slowdown) early indicators for 2026 from our own enquiry levels and the latest Rightmove data, suggest a recovery in buyer demand and a return to stable supply.
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