House prices in the South East have dropped by 0.9 per cent in the year to February 2026.

This comes as part of a broader trend revealed by the latest UK House Price Index (HPI), which shows a mixed picture of the property market across England.

According to the index, the average home in the South East now stands at £377,000, following a decline from the previous year.

housing in Brighton (Image: Hassocks)

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The region also saw a 0.4 per cent drop between January and February 2026, suggesting ongoing market adjustments.

However, this is not the trend for people renting flats in the city, as Brighton and Hove tenants now spend nearly two-thirds of their annual salary on rent, according to property data from Sell House Fast.

The area has also seen a sharp 26.4 per cent rise in rents over the past year, making it one of the UK’s fastest-gentrifying cities.

House prices in the South West fell by 0.6 per cent year-on-year but remained stable month-on-month.

Wales saw prices climb by 2.5 per cent.

In a statement, a spokesman for the Land Registry said: “The UK HPI reflects the final transaction price for sales of residential property.”

There were notable disparities across England.

The North East experienced the largest monthly increase, with prices up 2.7 per cent, while London recorded the steepest decline at 1.9 per cent.

Yorkshire and the Humber saw the strongest annual growth at 3.9 per cent.

The South East also recorded the highest number of repossession sales in December 2025, tied with London at 21.

Repossession is a process where a mortgage lender regains ownership of a property because the borrower has not made sufficient repayments.

In contrast, the East of England recorded none during the same period.

Property type continues to influence values, with detached homes commanding the highest prices.

In England, the average detached home was valued at £470,000 in February 2026, a 1.2 per cent increase from the previous year.

Semi-detached homes rose by 2.6 per cent to £289,000, while terraced homes reached £243,000, up 1.4 per cent.

However, flats and maisonettes declined by 3.8 per cent to an average of £216,000.

Buyer status also played a role in price trends.

First-time buyers in England paid an average of £243,000—a 0.7 per cent increase—while former owner occupiers paid £352,000, up 0.9 per cent.

In London, the average property price dropped by 3.3 per cent to £542,000.

Detached properties averaged £1,140,000—down 0.6 per cent from the previous year—while flats and maisonettes saw the sharpest decline, falling 6.1 per cent to £421,000.

Detached houses averaged £331,000, up 2.3 per cent, while semi-detached and terraced homes both grew by 3.2 per cent.

Only flats declined, falling by 2.5 per cent to an average of £126,000.

The HPI is based on completed housing transactions, typically reflecting data from six to eight weeks prior.

Industry experts caution against drawing conclusions from a single month’s figures, noting that the market is subject to regular fluctuations.