The Bank of England maintained its base rate at 3.75%, while the average five-year fixed mortgage held near 4.94%, suggesting a steadier borrowing backdrop following recent repricing.

London’s House Price Index showed a -1.2% YoY change to an average of £553,000, while transaction volumes were not available in the latest London-only official release, indicating incomplete visibility on liquidity.

Asking prices rose +2.8% MoM and +0.9% YoY, while rents grew +2.1% YoY, as consumer confidence stood at -16.

Overall, the February data indicate a balanced phase in London’s property market.

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Disclaimer

This Market Watch is for informational purposes only and does not constitute financial or investment advice. Always seek independent professional guidance before making property decisions.

Key Market Signals

Indicator

Status

Direction

BoE Base Rate

3.75% (held, 05 Feb 2026)

↔️

5-Year Fixed Mortgage

4.94% (avg, 05 Feb 2026)

↔️

London Price Index (HPI)

£553,000 avg; -1.20% YoY / +1.30% MoM (Nov 2025)

↔️

Rental Growth

+2.10% YoY (to Dec 2025)

⬆️

Asking Price

+2.80% MoM / +0.90% YoY (Jan 2026)

⬆️

Consumer Confidence

-16 (+1 pt MoM, Jan 2026)

⬆️

How These Numbers Affect You

A) Financing & Mortgage

Is getting a mortgage easier or more competitive now? Will my monthly payment drop?

A base rate held at 3.75% alongside an average five-year fixed near 4.94% suggests lenders are pricing within a steadier rate environment rather than rapidly repricing week to week.

First-Time Buyers: may find product choice stabilising, but affordability still depends on individual deposit size and stress testing.

Investors: may reflect more predictable debt costs for underwriting, particularly on fixed-rate assumptions.

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If I already have a mortgage, is now a good time to remortgage or wait?