Average UK house prices rose modestly in February, extending the housing market’s steady start to the year and pushing the typical property value to a new record.
According to the latest Halifax House Price Index, average property values increased by 0.3% in February following a 0.8% rise in January.
The typical UK home is now valued at £301,151, while annual growth strengthened slightly to 1.3%, the highest rate recorded for four months.
Amanda Bryden, head of mortgages at Halifax, said: “The housing market built on its steady start to the year in February, with average prices rising by +0.3%, following an increase of +0.8% in January. Annual growth also picked up to +1.3%, its strongest rate for four months.
“Since the start of the year, average prices have increased by around £3,000, with a typical property now costing £301,151.
“These latest figures suggest the market has regained some momentum after a softer end to 2025. While industry data for January show a slight easing in new mortgage approvals, overall activity has continued to prove resilient.
“There’s no doubt that affordability remains stretched, supply is constrained, and regional disparities persist. For those without family support, the path to home ownership feels particularly challenging.
“However, conditions have been gradually improving, with easing interest rates and real wage growth helping to support buyer confidence. As ever, timely and expert advice remains key to helping more people achieve their goal of stepping onto the property ladder.
“Looking ahead, geopolitical uncertainties seem set to influence the outlook for inflation and the wider economy. Against that backdrop, markets are now anticipating a more gradual path for interest-rate reductions.
“If realised, the speed at which borrowing costs ease may be tempered.”
NORTHERN REGIONS CONTINUE TO OUTPERFORM
Regional performance remains uneven, with stronger price growth concentrated across northern markets while southern regions experienced softer conditions.
Northern Ireland recorded the strongest annual increase, with average prices rising by 6.3% over the past year to £218,608. Scotland also saw robust growth, with prices climbing 4.7% annually to £222,286.
In Wales, prices increased by a more modest 2.4%, taking the typical home value to £231,637.
Within England, the North East posted annual growth of 3.5%, bringing the average property price to £181,838, while the North West saw prices rise by 2.9% to £246,292.
By contrast, more expensive southern markets continued to see prices soften. The South East recorded the largest annual decline, with values down 2.2% to £383,834, while London prices fell by 1.0% year-on-year to £538,200.
INDUSTRY REACTION
Tomer Aboody, director of specialist lender MT Finance, said: “The market saw a bit of a bounce at the end of last year and into this one once the Budget was out of the way.
“This data shows that people are feeling more confident and the market is in a better place than this time last year.
“Further interest rate cuts will help buyers and encourage activity. However, people are already coming to the conclusion that they either buy in this market or wait but there is only so long people can put off decisions before they simply have to move because of their situation.
“Many have been waiting for so long, and can see no government assistance on the horizon in the form of stamp duty reform etc, so are taking the plunge regardless.”
GROWING OPTIMISM
Louise Apollonio, sales and distribution director for retail mortgages at Shawbrook, said “The property market is warming up towards spring as house prices edged upwards in February.
“This growing optimism could be driven by a greater choice of properties on the market, alongside increased certainty following the Spring Statement, which was more subdued than some had anticipated.”
“In the coming months, geopolitical tensions internationally may still weigh on sentiment. Financial markets have recently scaled back their expectations of further Bank of England base rate cuts, which could influence mortgage pricing if that view persists.
“Those looking to buy should speak to a broker to assess their options and secure the most suitable deal for their situation.”
INFLATION FEARS
Mark Harris, chief executive of mortgage broker SPF Private Clients, says: “Although the Spring Statement did little to upset the market in the same way as November’s Budget did, since then the conflict in the Middle East has lifted energy prices and shrunk central bank rate cut expectations.
“Swap rates, which underpin the pricing of fixed-rate mortgages, have edged higher amid fears that rising prices will fuel inflation. Expectations of a near-term base rate cut, perhaps as early as this month, have substantially reduced.
“A number of lenders have already increased their mortgage rates to reflect higher Swaps and others are likely to follow suit in order to keep in line and protect service levels. Borrowers planning to take out a fixed-rate mortgage in the next few weeks or months may wish to secure a product now.”
CHALLENGES AHEAD
Mary-Lou Press, president of NAEA Propertymark, said: “The latest Halifax House Price Index confirms that average property values have remained above the £300,000 mark for the second consecutive month, reinforcing the resilience of the UK housing market.
“Sustained pricing at this level signals continued buyer confidence, despite affordability pressures and wider economic uncertainty.
“However, while rising prices may reflect market strength, they also present clear challenges. Without meaningful support for those stepping onto the housing ladder, higher property values will inevitably push up deposit requirements and borrowing thresholds.
“As prices remain above £300,000, aspiring first-time buyers face a growing hurdle in saving for larger deposits, making access to homeownership increasingly difficult.”
SLOW PACE OF GROWTH
Joe Nellis, economic adviser at accountancy and advisory firm MHA, said the data reflected the slow pace of price growth seen in recent months.
He said the February reading of the Halifax House Price Index suggests UK house prices grew by only 1.3% year-on-year, consistent with the slow and steady trend of recent months. Price growth remains lower than it has been since mid-2024, but lower borrowing costs and cooling inflation should encourage house prices to rise again throughout 2026.
However, he warned that global events could threaten the outlook.
He said sustained increases in energy prices linked to conflict in the Middle East risk reigniting inflation and adding to cost-of-living pressures. This could force the Bank of England to keep interest rates higher for longer, weighing on purchasing power and limiting further house price growth.
Nellis added that chronic housing undersupply continues to underpin prices, particularly in areas with strong employment and limited new construction.
He said the government is not meeting its housebuilding targets and is failing to address the underlying structural issues in the housing market. Without meaningful progress on planning reform and housing delivery, affordability pressures and regional imbalances are unlikely to ease.
GEOPOLITICAL EVENTS
Karen Noye, mortgage spokesperson at Quilter, said: “Halifax’s latest figures show that house prices in February increased 0.3% with annual growth now at 1.3%. The average UK home is valued at a new high of £301,151.
“While the market has enjoyed early momentum geopolitical events may throw this into question.
“The backdrop for buyers has become more complicated in just a few days. Hopes of a steadier rate environment have been disrupted by fresh instability following the war in Iran.
“While there will not be a sudden jump in mortgage rates lenders may pause planned reductions, with swap rates rising sharply as geopolitical tensions push up oil prices and revive inflation concerns. This shift makes it harder for households to judge when affordability will genuinely improve.
“Much now depends on how quickly rate expectations stabilise. If swap rates calm and lenders regain confidence, competition could return, but the outlook is highly sensitive to global events.”
