Prices stand still in February but still strongest start to a year for prices since 2020
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Property market news
The latest UK HPI figures point to a housing market that was stabilising rather than slowing. Annual price growth eased to 2.4% in the year to December 2025, with the average UK home now valued at £270,000. This reflects a market finding its natural balance after several years of volatility.
“The modest monthly dip in December is typical for the time of year and, importantly, is less about weakening demand and more about seasonal dynamics and increased supply. More importantly, transaction levels remained robust, with activity across 2025 running above both 2024 and pre-pandemic norms. This tells us that underlying demand remained resilient.
“Encouragingly, the wider economic backdrop has become more supportive. Inflation easing to around 3% and competition among lenders are pushing mortgage rates down, improving affordability. (Iain McKenzie, CEO of The Guild of Property Professionals)
Prices
Over the last 12 months the average sales price in Bristol was £370,509.
32% of sales in the past 12 months were flats, achieving an average sales price of £279,759. Houses achieved an average price of £423,579.
The highest value recorded by the Land Registry over the past 12 months was £2,150,000 for a flat and £3,000,000 for a house.
Demand
In the latest RICS survey, a net balance of +35% of respondents anticipate that sales volumes will pick up over the year ahead, the strongest reading since December 2024.
The number of sales agreed is 5% below this time in 2025 but is 9% higher than at this time in 2024 (Rightmove).
There were 61,013 mortgage approvals in December which is -8% lower than a year ago (Bank of England). Demand at the start of the year is similar to 2024, but 9% below last year’s surge ahead of the April stamp duty relief deadline (Zoopla).
Lettings update
Bristol’s lettings market remains strong, with rents still at historic highs and landlord yields continuing to outperform much of the wider South West.
Over the last 12 months, the average rent achieved for homes let in Bristol was £1,507 per month. This is a +2.6% change on the previous 12 month period. 66% of homes let in the past 12 months were flats, achieving an average rental value of £1,396 per month. Houses achieved an average rent of £1,755 per month.
There are currently 4,424 properties available to rent in Bristol which is 60.1% higher than a year ago. 64.2% of homes listed to rent in the past 12 months were flats.
Mortgages
The Bank of England is holding the base rate at 3.75% after cutting it from 4% late last year.
Inflation remains above target but continues to ease, with the latest confirmed CPI reading at 3.4% in December 2025, slightly higher than November but still moving in the right direction.
Mortgage pricing has steadied. The average 2‑year fixed now sits around 4.85%, and the average 5‑year fixed is close to 4.94%. (Barclays)
For Bristol buyers with strong equity, some of the sharpest deals start at 3.55% for a 2‑year fix and 3.75% for a 5‑year fix, offering welcome relief for movers and re-mortgagers.
Tracker mortgages are also more appealing again. With the base rate at 3.75%, many trackers fall in the 4%-4.25% range, such as a 2‑year tracker at base +0.21%, currently 3.96%.
Property market outlook
Market outlook for 2026. Renewed optimism.
Looking ahead, the consensus among property market experts is for steady, modest growth rather than any dramatic swings. After the dip in activity due to the late Autumn budget, Bristol’s housing market continues to renew momentum as we begin 2026.
We hope that was useful and informative. As always, our teams are here to help, get in touch with any questions about your local property market.
If securing a new mortgage or arranging a re-mortgage is important for you right now, click here to book an online consultation, our mortgage brokers are independent, and their services are free to you.
Finally, if you are (understandably) confused by some of the mixed market reporting, not least by some of the more sensational news reporting each month, click here for some independent insight into how House Price Indexes are compiled.
Sources: Rightmove, Zoopla, On the Market, Dataloft by Price Hubble, Land Registry, ONS National House Price Index, DLUHC.