UK house prices rise in February

House prices edged higher again in February, pushing the average UK property value to £301,151 after a monthly rise of 0.3%, according to Halifax.

That followed a stronger 0.8% increase in January for average prices to be boosted by roughly £3,000 since the start of the year.

Annual growth saw house prices being 1.3% above their level a year earlier, compared with +1.1% recorded in January.

That’s the strongest annual rate for four months.

Market is resilient

The head of mortgages at Halifax, Amanda Bryden, said: “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.”

She added: “However, conditions have been gradually improving, with easing interest rates and real wage growth helping to support buyer confidence.”

Some areas perform better

Across the UK, regional price movements remain uneven, with stronger annual growth continuing in northern markets while several southern areas recorded declines.

Northern Ireland recorded the largest annual increase, with prices rising 6.3% over the year to £218,608.

Scotland followed with annual growth of 4.7%, taking the average property value to £222,286.

In Wales, prices rose 2.4% compared with a year earlier, leaving the average home valued at £231,637.

England’s house prices

In England, the North East saw annual growth of 3.5%, with average house prices reaching £181,838.

The North West recorded a 2.9% rise year on year, with the average property now costing £246,292.

However, the South East posted the largest annual fall, with prices down 2.2% to £383,834.

London also recorded a year-on-year decline, where average values fell 1% to £538,200.

Property sector reaction to the Halifax house price data

Tom Bill, the head of UK residential research at Knight Frank, said: “Momentum in the housing market had been rebuilding after November’s Budget and the outlook for mortgages was brighter only a week ago.

“However, a prolonged conflict in the Middle East would dampen sentiment and delay rate cuts due to rising inflation, which would put downwards pressure on prices.

“That said, we have seen how quickly interest rate expectations can change this year, and the underlying weakness in the jobs market is one of several reasons that multiple cuts could come back onto the table in 2026, which would support demand. A lot hinges on the length of the conflict.”

Iain McKenzie, the CEO of The Guild of Property Professionals, said: “The latest Halifax figures suggest the housing market is continuing to build on the steady momentum we’ve seen since the start of the year.

“A 0.3% monthly rise takes the average UK property price to £301,151, and while growth remains modest, it’s encouraging to see prices edging upwards again after the softer close to 2025.

“Importantly, price growth is being balanced by a healthier level of supply, with around 6% more homes on the market than a year ago.

“This is helping to keep values in check and is creating a more sustainable environment for buyers and sellers alike.”

Karen Noye, a mortgage expert at Quilter, said: “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.”

Tony Gambrill, the regional sales director at Chestertons, said: “In February, the property market was driven by first-time buyers as well as families wanting to upsize which boosted demand for new-build homes and larger houses.

“Despite some lenders raising mortgage rates again, house hunters remain undeterred which suggests a particularly busy and competitive spring market ahead.”

Mary-Lou Press, president of NAEA Propertymark (National Association of Estate Agents), 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.”