UK February house prices hit a new high, market shows resilience

Investing.com - According to data released by Halifax on Friday, UK house prices in February reached a record high, with the average property value now at £301,151.

February house prices increased by 0.3% month-on-month, following a 0.8% rise in January. The annual growth rate accelerated from 1.1% in January to 1.3%, marking the strongest increase in four months. Since the beginning of this year, the average house price has risen by about £3,000.

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Amanda Bryden, Head of Halifax Mortgages, said: “The housing market in February continued the steady start seen earlier this year. These latest figures indicate that the market has regained some momentum after a sluggish performance at the end of 2025.”

Regional differences in house price performance remain significant. Northern Ireland continues to lead the UK, with an average house price increase of 6.3% over the past year, reaching £218,608. Scotland saw a strong annual growth of 4.7%, with an average house price of £222,286. Wales experienced a more moderate increase of 2.4%, with typical home values at £231,637.

Within England, stronger house price growth remains concentrated in the North. The Northeast saw a 3.5% increase year-over-year to £181,838, while the Northwest experienced a 2.9% annual growth, with an average house price of £246,292.

House prices in the southern market continued to decline. Southeast led the decline, with prices down 2.2% year-on-year to £383,834, while the average house price in London fell 1.0% to £538,200.

January industry data showed a slight slowdown in new mortgage approvals. According to the Bank of England, mortgage approvals for house purchases in January decreased by 1.7% month-on-month to 59,999. Year-over-year, this figure was 9.6% lower than in January 2025.

UK house sales in January declined. Seasonally adjusted, total residential transactions in January were 94,680, down 5.0% from 99,710 in December.

Bryden said: “Undoubtedly, housing affordability remains tight, supply is limited, and regional disparities persist. However, market conditions have been gradually improving, with falling interest rates and real wage growth helping to support buyer confidence.”

The January RICS Residential Market Survey showed early signs of improvement in the sales market. The net balance of new buyer inquiries rose from -21% to -15%, and the number of completed sales improved from -18% to -9%.

Bryden added: “Looking ahead, geopolitical uncertainties seem likely to influence inflation and the broader economic outlook. Against this backdrop, the market currently expects a more gradual pace of interest rate cuts.”

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