Britain’s largest building society, Nationwide, has reported “steady” house price growth in February, with expectations for increased market activity in the coming months.
The average UK house price saw a 0.3 per cent month-on-month rise, consistent with January’s figures. Annually, property values climbed by 1.0 per cent, also unchanged from the previous month. This brought the typical house price to £273,176 in February, as the market anticipates a busier period ahead.
Robert Gardner, Nationwide’s chief economist, said: “Annual house price growth remained steady at 1.0 per cent in February. Prices increased by 0.3 per cent month-on-month, after taking account of seasonal effects.
“This reinforces the view of a modest recovery after a dip at the end of 2025, most likely reflecting uncertainty around potential property tax changes ahead of the Budget.”
Mr Gardner added: “Housing market activity is likely to recover in the coming quarters, especially if the improving affordability trend seen last year is maintained as expected.”
He said that, looking across 2025 as whole, total housing market transactions were 10 per cent higher than in 2024.
Mr Gardner said improved affordability and an easing in credit availability “has helped to support first-time buyer activity”.
Alice Haine, a personal finance analyst at Bestinvest by Evelyn Partners, said: “UK inflation had been expected to ease back sharply to the Bank of England’s target of 2 per cent by April, with the cocktail of rising unemployment, sluggish economic growth and slowing wage growth expected to provide enough impetus for the (Bank of England) to vote for another 25 basis-point reduction (in the base rate).
“However, an increasingly uncertain geopolitical backdrop amid renewed tensions in the Middle East may scupper that expectation if energy prices rise dramatically and supply chains are disrupted by the conflict.”
She said many borrowers on one of the 1.8 million fixed-rate mortgages due to end this year are rolling off ultra-low five-year fixed-rate mortgages into a much higher interest rate environment.
“They face refinancing at much higher rates than their current deal, which will put pressure on disposable incomes, though they can take comfort that they have avoided the worst of the mortgage crisis.”
Iain McKenzie, chief executive of The Guild of Property Professionals, said: “While geopolitical uncertainties could influence inflation, the broader trajectory points towards easing monetary policy and improving buyer confidence.
“In this environment, sales volumes are likely to strengthen, and the market should continue its steady, sustainable recovery.”
