UK house prices hold steady in February

The UK’s annual house price growth held at 1% in February, with a modest rise at the start of the year, Nationwide reports.

It says there was a 0.3% month-on-month increase to lift the average price to £273,176, from £270,873 the previous month.

The lender’s chief economist, Robert Gardner, said: “This reinforces the view of a modest recovery after a dip at the end of 2025, most likely reflecting uncertainty around potential property tax changes ahead of the Budget.

“Nevertheless, the number of mortgages approved for house purchase remain close to the levels prevailing before the pandemic.”

BTL purchases up

He continued: “Looking across 2025 as whole, total housing market transactions were 10% higher than in 2024.

“Improved affordability and an easing in credit availability has helped to support first-time buyer activity, with mortgage completions up 18% year on year.”

Mr Gardner added: “There has also been a gradual increase in the number of buy to let purchases involving a mortgage, although activity remains quite subdued compared to historic levels, reflecting the continued headwinds impacting this part of the market.

“For example, the higher interest rate environment tends to exert more of a drag on landlord demand (rather than owner occupier), while changes to the regulatory environment have also impacted landlord sentiment.”

Property sector reaction

Nathan Emerson, the CEO of Propertymark said: “The figures from Nationwide show continued upward movement in house prices, reflecting resilient demand in many parts of the UK despite ongoing affordability constraints.

“While rising prices may signal confidence in the market, they also reinforce the need for policies that support supply and improve access for first-time buyers.

“Without increasing the number of homes available, sustained price growth risks further stretching affordability.”

Ian Futcher, a financial planner at Quilter, said: “While this suggests a gradual recovery compared to the dip seen towards the end of last year, we are unlikely to see a marked uplift in house prices for a while yet.

“Residential property transactions data out last week show that despite the slight easing of mortgage rates and more competitive offerings being brought to the market by lenders, the market remains very much subdued.”

Jeremy Leaf, a north London estate agent and a former RICS residential chairman, said: “Demand has picked up over the last month or so with buyers breathing a collective sigh of relief that Budget measures weren’t as potentially damaging as rumours would have us believe.

“There is added confidence that the spring statement this week will prove even more of a non-event in terms of its influence over decision-making.”

Iain McKenzie, the CEO of The Guild of Property Professionals, said: “One factor keeping price growth in check is the elevated level of supply, giving buyers both great choice and negotiating power.

“This is helping to stabilise values even as demand begins to improve.

“This balance is healthy for the market and supports sustainable growth rather than short-term spikes.”

Tom Bill, the head of UK residential research at Knight Frank, said: “House price growth was flat in February as the post-Budget bounce tailed off.

“Activity levels have been solid but unspectacular in recent weeks but demand will strengthen if mortgage rates continue to head lower.

“However, a period of domestic political uncertainty caused by a Labour leadership challenge could take the edge of any recovery.

“A protracted conflict in the Middle East could also dampen sentiment or have an inflationary impact but it’s too early to assess the likelihood of either.”