The UK housing market continued its modest upward trend in February, with property values rising again after a strong start to the year. New figures from Halifax indicate that average prices have now climbed to another record level, reflecting continued resilience in buyer demand.
Although the pace of growth remains measured, the latest data suggests the market has regained some momentum following a softer end to 2025. Analysts say easing borrowing costs and rising wages are helping to stabilise activity, even as affordability challenges persist for many would-be buyers.
House Prices Continue Gradual Rise at Start of 2026
Average UK house prices increased by 0.3 per cent in February, following a 0.8 per cent rise in January, according to the Halifax House Price Index. The lender reports that the typical property now costs £301,151, marking a new high for the market.
Taken together, these monthly increases mean that average property values have risen by roughly £3,000 since the beginning of the year. Halifax also noted that annual house price growth reached 1.3 per cent in February, up from 1.1 per cent recorded the previous month. This represents the strongest yearly growth rate in four months.
Amanda Bryden, head of mortgages at Halifax, said the latest figures point to a market that has “built on its steady start to the year”. She noted that February’s price rise follows the stronger increase recorded in January, indicating that housing demand has remained relatively stable so far in 2026.
The Halifax index is closely watched by analysts as a key indicator of property market trends across the UK. Its latest release suggests that while price growth is far from rapid, the housing market has regained some stability after the slowdown observed toward the end of last year. Industry data for January also showed a slight easing in new mortgage approvals. Yet, according to Halifax, overall market activity has continued to prove resilient despite this dip.
Affordability Pressures Remain despite Improving Conditions
Despite the continued rise in property values, Halifax emphasised that significant challenges remain for many buyers. Affordability is still stretched, with higher living costs and elevated mortgage rates continuing to limit access to home ownership.
Bryden acknowledged that the path onto the property ladder remains particularly difficult for those without financial support from family. Limited housing supply and persistent regional differences in price growth also continue to shape the market landscape.
According to Halifax, Northern Ireland and Scotland are currently recording the strongest annual house price growth across the UK. These regional variations highlight how local economic conditions and housing availability can influence price trends.
Even so, there are signs that some conditions are gradually improving. Halifax notes that easing interest rates and real wage growth have begun to support buyer confidence. These factors may help sustain activity in the housing market, particularly if borrowing costs continue to moderate.
Looking ahead, wider economic uncertainties may still influence the outlook. Bryden said geopolitical developments could affect both inflation and the broader economy, which in turn may shape the trajectory of interest rates.
