The latest Halifax data suggests steady momentum and slightly higher prices in February, despite economic uncertainty.
The UK housing market has continued its steady start to 2026, with new figures showing house prices rising again in February. According to the latest Halifax House Price Index, the average UK property price increased by 0.3% in February following a stronger 0.8% rise in January. This brings the average property price to £301,151, which is approximately £3000 higher than at the start of the year.
On an annual basis, house prices are now 1.3% higher than a year ago, marking the strongest rate of growth seen in the past four months.
While growth remains modest compared with previous years, the figures suggest the property market has regained some momentum after a quieter end to 2025.
Affordability challenges
Affordability remains a key challenge for many buyers. Rising property values, combined with elevated borrowing costs compared with historic lows, mean the path to home ownership can feel challenging – especially for first-time buyers without family support.
‘There’s no doubt that affordability remains stretched, supply is constrained, and regional disparities persist,’ says Amanda Bryden, Head of Mortgages at Halifax. ‘For those without family support, the path to home ownership feels particularly challenging.
‘However, conditions have been gradually improving, with easing interest rates and real wage growth helping to support buyer confidence,’ adds Bryden. ‘As ever, timely and expert advice remains key to helping more people achieve their goal of stepping onto the property ladder.’
Regional house price differences
Regional differences across the UK housing market remain significant. Northern Ireland continues to lead the way, with annual house price growth of 6.3%, followed by Scotland at 4.7%.
In England, the strongest increases are still in northern regions, including the North East and North West. Meanwhile, more expensive southern areas have experienced some price softening, with average values falling slightly in both the South East and London.
Looking ahead, the wider economic outlook may influence the pace of housing market activity. Ongoing geopolitical uncertainty could affect inflation and interest-rate expectations, meaning any reductions in borrowing costs may happen gradually rather than quickly.
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