House price growth holds steady in February, Nationwide reports
UK house prices increased slightly month-on-month in February as improving affordability continues to drive buyer activity.
According to the latest Nationwide House Price Index, the average house price now stands at £273,176, up from £270,873 in January.
The report also shows that annual growth remained steady, up 1% in February, the same as recorded the previous month.
Nationwide’s report says that the figures represent a modest recovery after a dip at the end of 2025, which reflected uncertainty around potential property tax changes ahead of the Budget.
Its data says that, nevertheless, the number of mortgages approved for house purchases remains close to pre-pandemic levels.
Robert Gardner, chief economist of Nationwide, said: “Home mover transactions involving a mortgage have recovered over the past year, with activity up 15% year-on-year.”
“There has also been a gradual increase in the number of buy-to-let purchases involving a mortgage, although activity remains quite subdued compared to historic levels, reflecting the continued headwinds impacting this part of the market. For example, the higher interest rate environment tends to exert more of a drag on landlord demand (rather than owner occupier), while changes to the regulatory environment have also impacted landlord sentiment.”
“Cash transactions last year were at a similar level to 2024. In recent years, there had been something of a decline in the share of cash purchases, which accounted for 35% of transactions in 2025, down from a peak of 42% in 2023.
“Housing market activity is likely to recover in the coming quarters, especially if the improving affordability trend seen last year is maintained as expected.”
Alice Haine, Personal Finance Analyst at Bestinvest by Evelyn Partners, commented: “UK house price growth remained steady in February with a 0.3% uplift on the month, following a similar increase in January, as the housing market continues to show tentative signs of recovery. Annual house price growth remained unchanged at 1% as confidence returns to the sector following those Autumn Budget jitters that briefly stalled the market when uncertainty over potential property tax changes from Chancellor Rachel Reeves weighed on sentiment.”
“The rebound in activity is largely driven by a surge of sellers listing their homes, with 6% more homes on the market than a year ago. This increase points to improving confidence as more homeowners look seek to capitalise on strengthening conditions to move, including more competitive mortgage rates and the widest choice of low-deposit mortgages for first-time buyers in almost two decades.
“An increase in the number of properties on the market is likely to prove positive for buyers – many of whom remain concerned about economic uncertainty, cost-of-living pressures and elevated interest rates – as greater choice may place them in a stronger position to negotiate on price. However, this could temper house price growth if sellers are forced to keep pricing realistic to secure a sale.”
Jason Tebb, president of OnTheMarket, commented: “Housing market activity and sentiment have continued to pick up this year, with buyers and sellers proceeding with their moves with more clarity and confidence, particularly as the Spring Forecast has not attracted anything like the same level of negative speculation as November’s Budget.”
“The resilience the market demonstrated last year continues. Property values are being held in check to a degree as affordability challenges remain, although the data shows that much depends on whereabouts in the country you are. Sellers who price sensibly are more likely to attract interest, particularly in a market where there is more stock available and therefore increased choice for buyers in some areas.”
“The series of interest rate cuts over the past 19 months has year sent a positive message to buyers and sellers, while helping ease affordability. Any further rate reductions will provide a similar boost and the early signs for the year are encouraging.”
Source: Showhouse
