UK house prices rise more than expected, Nationwide data shows

British house prices rose slightly faster than expected last month after a dip at the end of 2025 linked to uncertainty over finance minister Rachel Reeves' budget, mortgage lender Nationwide Building Society announced in London on March 2. The latest property index revealed that house prices increased by 0.5% in February 2026, surpassing economists' forecasts of a 0.3% rise and signaling a potential recovery in the UK housing market. This rebound follows a period of market volatility that began after Chancellor Reeves delivered her first budget in late 2025, which introduced various tax changes and economic measures that created uncertainty among potential homebuyers and mortgage lenders. The improvement in house price growth suggests that the UK housing market is beginning to stabilize after the temporary slump caused by the budget uncertainty, though analysts note that the overall annual rate of house price growth remains modest, indicating that while the market is recovering, it's not experiencing a dramatic surge.