UK house prices reach new high in February as market shows resilience

UK house prices climbed to a fresh record in February 2026, with the average property valued at £301,151 according to data released Friday by Halifax, as the housing market built on its steady start to the year and regained momentum after a softer end to 2025. Property prices increased by 0.3% in February following a 0.8% rise in January, with annual growth accelerating to 1.3%, the strongest rate in four months. Since the beginning of 2026, average prices have risen by approximately £3,000, demonstrating continued resilience despite broader economic uncertainties. 'The housing market built on its steady start to the year in February,' said Amanda Bryden, Head of Mortgages at Halifax. 'These latest figures suggest the market has regained some momentum after a softer end to 2025.' Regional differences in house price performance remain significant across the UK. Northern Ireland continues to lead with average prices up 6.3% over the past year to £218,608, followed by Scotland with strong growth of 4.7% annually, taking the average price to £222,286. Wales saw a more modest increase of 2.4%, with the typical home value reaching £231,637. Within England, stronger price growth remains concentrated in northern regions, with the North East seeing prices rise 3.5% to £181,838 and the North West recording annual growth of 2.9% to £246,292. In contrast, southern markets continue to see prices ease, with the South East leading declines at 2.2% year-on-year to £383,834, while London saw average values fall by 1.0% to £538,200. Despite the price increases, industry data indicates some cooling in mortgage activity. Bank of England figures show the number of mortgages approved to finance house purchases decreased in January by 1.7% to 59,999, with the figure 9.6% below January 2025 levels. UK home sales also decreased in January, with seasonally adjusted residential transactions totaling 94,680, down by 5.0% from December's figure of 99,710. 'There's no doubt that affordability remains stretched, supply is constrained, and regional disparities persist,' Bryden commented. 'However, conditions have been gradually improving, with easing interest rates and real wage growth helping to support buyer confidence.' The January RICS Residential Market Survey indicates early signs of improvement in the sales market, with new buyer enquiries rising from a net balance of -21% to -15%, and agreed sales improving from -18% to -9%. Looking ahead, Bryden noted that 'geopolitical uncertainties seem set to influence the outlook for inflation and the wider economy,' with markets now anticipating a more gradual path for interest-rate reductions.