Move or Wait? London’s February 2026 Property Signal

The Bank of England maintained its base rate at 3.75%, while the average five-year fixed mortgage held near 4.93%, signalling a stabilising borrowing environment after recent adjustments.

London’s House Price Index showed a -1.0% YoY change to an average of £551,000, with transaction volumes around 94,680, suggesting moderate market activity.

Asking prices remained virtually flat at £682,907, while rents grew 1.1% YoY, sustaining yields even as consumer confidence stood at -19.

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

Key Market Signals

How These Numbers Affect You

A) Financing & Mortgage

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

A 3.75 % base rate hold suggests a plateau in borrowing costs, while average five-year fixed rates at 4.93 % indicate that lenders are pricing in stability. Monthly payments are unlikely to drop significantly in the immediate term, but the narrowing spread between the base rate and fixed products points to increased competition among high-street banks.

First-Time Buyers: lower volatility in fixed-rate offers may improve mortgage choice and offer a more predictable window for stress-testing affordability.

Investors: suggests a period of relative calm to evaluate debt-service coverage ratios before potential further rate adjustments.

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

With the base rate remaining at 3.75 %, the incentive to wait for a significant drop is balanced against the risk of products being withdrawn if inflation data fluctuates. Current trends signal that while rates have eased from recent peaks, they may remain at these levels for several months.