The housing market continued its steady start to the year in February, with average prices rising by 0.3%, following an increase of 0.8% in January, the latest Halifax house price index shows.
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 the average property price edging up to a new record high of £301,151.
Regional differences in house price performance remain significant, with a clear split between stronger growth in the North and softer conditions in the South.
Northern Ireland continues to lead the UK, with average prices up 6.3% over the past year to £218,608. Scotland also recorded strong growth, rising 4.7% annually to an average price of £222,286.
Elsewhere, Wales saw a more modest increase of 2.4% on annual basis, taking the typical home value to £231,637.
Within England, stronger price growth remains concentrated in northern regions. The North East saw prices rise 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.
By contrast, the more expensive southern markets continue to see prices ease. The South East led declines, with prices down 2.2% year-on-year, while London saw average values fall by 1.0% to £538,200.
Amanda Bryden, head of mortgages at Halifax, 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. 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.”
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, commented: “Halifax’s data reinforces what we’re seeing on the ground: prices are broadly stable, with modest growth where supply is tight and homes are priced realistically.
“This is not a market being driven by speculative price inflation, but by improved confidence and the genuine need to move as committed buyers re-enter the market. Buyers are more decisive and prepared to make strong offers to secure the right property. Activity since the start of the year has been noticeably stronger, and as we head into spring, that underlying demand is supporting prices rather than pushing them sharply higher.
“The lack of measures in the form of sudden tax changes in the Spring Statement was welcome. The biggest boost to the housing market is stability, with consistency around stamp duty and mortgage policy giving buyers and sellers the confidence to plan."
Karen Noye, mortgage expert at Quilter, added: “While the market has enjoyed early momentum geopolotical 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.
“Borrowers approaching the end of a fixed deal should start conversations early, as having options lined up can reduce the risk of being caught by sudden rate moves. Those looking to buy should also factor in the possibility that pricing may remain uneven for a while, so stress testing repayments at slightly higher rates is sensible. In a market driven as much by geopolitics as by domestic demand, being organised is one of the few areas where borrowers still have some control.
“Although buyer interest has improved on last year, sentiment remains fragile. Global uncertainty could slow the momentum that had been emerging, particularly if markets continue to expect firmer inflation. That would keep mortgage pricing stickier than borrowers hoped, limiting any meaningful uplift in demand. 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."
