House prices rose by 0.3% month-on-month in February, the same as in January, while annual house price growth remained unchanged at 1.0%, the latest Nationwide house price index shows.
Robert Gardner, Nationwide's chief economist, 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.
“Looking across 2025 as whole, total housing market transactions were 10% higher than in 2024. As we explored in our Housing Affordability Report, improved affordability and an easing in credit availability has helped to support first-time buyer activity, with mortgage completions up 18% year-on-year.
"Home mover transactions involving a mortgage have also recovered over the past year, with activity up 15% year-on-year.
“Housing market activity is likely to recover in the coming quarters, especially if the improving affordability trend seen last year is maintained as expected.”
Jonathan Hopper, CEO of Garrington Property Finders, commented: “The January bounce continued into February, and last month saw the property market rinse and repeat the gains made in the first month of the year.
“Nationwide’s data shows that after snapping back to 0.3% growth in January, the average home rose in value by a further £2,303 in February.
“The rising prices are first and foremost the result of the uncorking of demand that many would-be buyers kept bottled up during an uncertain 2025.
“But they also stem from the sense that many people have that this is an attractive time to buy, after many areas in the south saw prices flatline or even fall last year. With plenty of stock available, homes have become more affordable and buyers are spoilt for choice.
“Mortgages have got cheaper too, as many lenders reduced their interest rates in expectation that the Bank of England will cut its base rate later this month. More affordable borrowing costs boost the appeal of buying over renting and increase the amount that people can borrow, which can help nudge prices upwards.
“The other big trend so far this year has been the rise in the number of transactions. Estate agents have been busy, buyers have been returning to the market in force and we’re seeing significantly more buyers than we did at the same point in 2025.
“It’s too early to say whether the conflict in Iran will upset the progress seen so far. A spike in oil prices and the associated inflation risk could dash hopes for further interest rate cuts, but the more immediate question is whether the Chancellor will use tomorrow’s Spring statement to offer some support to the housing market after the Treasury enjoyed bumper tax receipts in January.
“The market has made a strong start to 2026, and would welcome some stability and clarity from the government to help consolidate its gains.”
Nicky Stevenson, managing director at Fine & Country, added: “A modest rise in house prices last month suggests the market is continuing to regain its footing in a measured and sustainable way. This is not a sharp movement, but it is a boost for sellers, following a softer end to 2025.
“Annual growth holding steady at 1% is also encouraging and hits that balance that appeases both buyers and sellers alike.
“Demand is still there, but we are seeing that buyers are making decisions carefully and with a clear eye on value. That kind of steady, considered activity is often a healthier backdrop for the market than rapid price jumps.
“February is typically the point in the property calendar when momentum begins to build again. By this stage, the post-Christmas slowdown is behind us, buyers have had time to review their finances, and many are starting to act on plans. That makes a modest rise at this point in the year a positive signal.
“Nationwide’s figures also underline the importance of improving affordability, particularly for first-time buyers. When entry-level demand is strengthening, it tends to support confidence across the wider market and helps keep the chain moving.
“Success for sellers looking to market their homes will come from understanding genuine buyer appetite and responding to local conditions, rather than expecting blanket price growth across the board. The level of stock in many areas of the country is still high and that variety gives buyers a strong hand that must be met with a fair pricing strategy from sellers.”
