UK house prices increased modestly in February, with annual growth holding at 1% and the average property price rising to £273,176, according to Nationwide’s latest house price index. Prices also edged up 0.3% month-on-month, suggesting the market has stabilised after the uncertainty seen late last year following Budget-related tax concerns. Improving affordability and slightly lower mortgage rates are helping to support buyer activity as the market moves into the spring period.
- Total housing market transactions across 2025 were 10% higher than in 2024
- First-time buyer completions increased 18% year-on-year as affordability and credit availability improved
- Home mover transactions involving a mortgage rose 15% year-on-year
- Buy-to-let mortgage purchases have increased gradually
Original article source: Mortgage Strategy
After the uncertainty seen late last year, modest annual price growth of 1% and a small monthly increase suggest the market has entered a period of relative stability rather than decline.
Activity levels are also beginning to improve. Housing transactions rising 10% compared with the previous year indicates that buyers are returning as mortgage affordability slowly improves and lenders introduce more competitive products. This gradual return of demand is typically one of the early signs of confidence returning to the market.
First-time buyers appear to be playing a particularly important role in this shift. An 18% rise in completions suggests that improved credit availability and easing affordability pressures are helping more buyers take their first step onto the property ladder, while the increase in home mover activity shows that existing homeowners are also starting to re-engage with the market.
Although buy-to-let purchases remain below historic levels, the gradual increase in mortgage-backed investor activity is remarkable. Landlords continue to face higher borrowing costs and regulatory changes, but sustained rental demand means well-positioned property investments remain attractive for those taking a longer-term view of the UK housing market.
