UK house prices rose 0.3% in February, following a 0.8% increase in January, with the average property now costing £301,151, a new high.
Annual growth reached 1.3%, its strongest rate in four months, up from 1.1% in January.
According to the latest figures from Halifax, regional differences remain pronounced. Northern Ireland leads the UK with annual price growth of 6.3%, taking the average property to £218,608, while Scotland recorded a 4.7% rise to £222,286. Wales posted more modest growth of 2.4%, bringing the typical home value to £231,637.
Within England, stronger performance is concentrated in the North. The North East saw prices climb 3.5% over the year to £181,838, while the North West recorded annual growth of 2.9%, with the average home now costing £246,292. Southern markets tell a different story, with the South East seeing prices fall 2.2% year-on-year to £383,834 and London recording a 1.0% decline to £538,200.
"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," said Amanda Bryden, head of mortgages at Halifax.
"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."
Tom Bill, 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 pressure on prices downwards. 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.”
Mary-Lou Press, President of NAEA Propertymark (National Association of Estate Agents), comments, “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.”
Tony Gambrill, Regional Sales Director at Chestertons, says, “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.”
