UK house prices continued to edge higher in February, according to the latest Halifax index, pushing the national average property value above £300,000. The lender reported a modest monthly increase following stronger growth in January, suggesting the market has regained some momentum after a softer end to 2025. However, uncertainty around interest rates and geopolitical tensions continues to shape expectations for borrowing costs and housing activity in the months ahead.
- UK house prices rose 0.3% in February after a 0.8% rise in January, Halifax says
- The average UK property price reached £301,151, up from £300,283 the previous month
- Prices are 1.3% higher year-on-year, representing an increase of roughly £3,000 during 2026 so far
- Mortgage approvals fell 1.7% to 59,999 in January, Bank of England data shows
- Regional prices rise in Northern Ireland, Scotland and Wales, but fall in London and the South East
- Rising swap rates have increased fixed-rate mortgage costs, prompting lenders to adjust pricing
Original article source: Forbes Advisor UK
The latest Halifax figures supports a pattern that has been quietly developing across the UK property market over the past year – steady price stability despite a complex economic backdrop.
A monthly rise of 0.3% may appear modest, but in the context of elevated borrowing costs and geopolitical uncertainty, it speaks to the underlying resilience of housing demand. The average UK property price holding above £300,000 is not simply a statistical milestone. It reflects a market that has largely absorbed the shock of higher interest rates and continues to find equilibrium.
Much of the attention remains focused on the direction of interest rates. With swap rates edging higher and geopolitical tensions potentially delaying rate cuts, mortgage pricing is likely to remain relatively firm in the near term. Yet the market has already spent nearly two years adjusting to tighter borrowing conditions. Buyers, lenders and sellers have recalibrated expectations accordingly.
What is particularly significant in the latest data is the continued divergence between regions. Northern Ireland, Scotland and parts of northern England are seeing solid annual growth, while traditionally more expensive markets in the South East and London have cooled slightly. Rather than showing weakness, this shift reflects a natural rebalancing after years of stronger growth in southern markets.
This type of regional normalisation often creates opportunity. Markets that have experienced periods of consolidation frequently become more attractive entry points, particularly where supply remains constrained and long-term housing demand continues to exceed availability.
At the same time, affordability pressures are still very real for first-time buyers, especially those without family support. But from a broader market perspective, limited supply remains one of the most important stabilising forces. Even modest levels of buyer demand can sustain pricing when housing stock remains tight.
Taken together, the latest Halifax figures suggest a market that is neither overheating nor retreating. Instead, the UK housing sector continues to demonstrate the characteristics of a mature asset class – adjusting to economic conditions while maintaining long-term stability.
