UK House Prices Rise Slightly in February

House prices in the UK edged higher in February, with Halifax reporting a 0.3% monthly increase. This lifted the average property value to £301,151, following a stronger 0.8% rise in January. Since the start of the year, prices have increased by approximately £3,000, signalling a steady, if modest, upward trend in the market.

Annual Growth Strengthens

On an annual basis, house prices were 1.3% higher than in February 2025, up from 1.1% growth recorded in January. This marks the strongest annual rate of increase in four months, suggesting some regained momentum after a softer end to last year.

Market Resilience Despite Challenges

Amanda Bryden, head of mortgages at Halifax, commented: “These latest figures suggest the market has regained some momentum after a softer end to 2025. While industry data for January show a slight easing in new mortgage approvals, overall activity has continued to prove resilient.” She noted ongoing challenges including stretched affordability, constrained supply, and regional disparities but highlighted improving conditions due to easing interest rates and real wage growth supporting buyer confidence.

Regional Variations in Price Movements

Price changes across the UK remain uneven. Northern Ireland led with the largest annual increase of 6.3%, raising average prices to £218,608. Scotland followed with 4.7% growth, taking average values to £222,286, while Wales saw a 2.4% rise to £231,637.

In England, the North East experienced 3.5% annual growth with average prices at £181,838, and the North West recorded a 2.9% increase to £246,292. Conversely, the South East and London saw declines, with prices falling 2.2% to £383,834 and 1% to £538,200 respectively.

Implications for Landlords and Agents

The modest overall price growth combined with regional disparities means landlords and letting agents should consider local market conditions carefully. Northern regions may offer stronger capital appreciation potential, while southern areas, particularly London and the South East, could see more price pressure. The constrained supply noted by Halifax may continue to support rental demand, but affordability pressures remain a key factor influencing market activity.

Industry Perspectives on Market Outlook

Tom Bill, head of UK residential research at Knight Frank, cautioned that geopolitical tensions, such as the conflict in the Middle East, could dampen market sentiment and delay interest rate cuts, potentially putting downward pressure on prices. However, he also noted that multiple rate cuts could return in 2026 depending on economic conditions.

Iain McKenzie, CEO of The Guild of Property Professionals, observed that the market is building on steady momentum with a healthier supply level—around 6% more homes on the market than a year ago—helping to balance price growth and create a more sustainable environment for buyers and sellers.

Mortgage expert Karen Noye from Quilter highlighted recent complications for buyers due to geopolitical instability affecting mortgage rate expectations, making affordability harder to predict.

Tony Gambrill, regional sales director at Chestertons, reported strong demand from first-time buyers and families upsizing, particularly for new-build and larger homes, suggesting a busy and competitive spring market.

Mary-Lou Press, president of NAEA Propertymark, emphasised that sustained property values above £300,000 reflect ongoing buyer confidence despite affordability challenges and economic uncertainty.

What This Means for UK Landlords

For landlords, the current market conditions indicate a cautiously optimistic environment. Modest price growth combined with resilient demand and improved supply levels may support rental income stability. However, regional differences and affordability pressures require careful consideration when managing portfolios or planning acquisitions. Staying informed about local market trends and mortgage conditions will be essential for effective property management and investment decisions.

Suggested internal link anchors

• UK house price growth
• regional property values
• mortgage approvals
• property supply levels
• buyer confidence
• affordability pressures
• rental demand
• market momentum
• interest rates impact
• new-build homes
• property investment strategies

TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/