UK house prices rose by 0.3% in February compared with the previous month, while annual growth remained steady at 1.0%, according to figures published on Monday by Nationwide Building Society.
The average UK property price increased to £273,176 in February, up from £270,873 in January. On a seasonally adjusted basis, Nationwide’s monthly house price index climbed to 547.0 from 545.4.
Robert Gardner, Chief Economist at Nationwide, said the latest data supports the view that the housing market is experiencing a modest recovery after a slowdown at the end of 2025. He noted that the earlier dip was likely linked to uncertainty surrounding potential property tax changes ahead of the government’s Budget announcement.
Mortgage Approvals and Buyer Activity Remain Strong
Mortgage approvals for home purchases remain close to pre-pandemic levels, reflecting resilient demand. Total housing market transactions in 2025 were 10% higher than in 2024.
First-time buyers showed particularly strong activity, with mortgage completions rising 18% year on year. Gardner attributed this improvement to better affordability conditions and a gradual easing in credit availability.
Home movers also returned to the market, with mortgage-backed transactions increasing 15% compared with the previous year.
Buy-to-Let and Cash Purchases
Buy-to-let purchases involving mortgages recorded a gradual recovery. However, activity remains below historic averages. Higher interest rates continue to weigh more heavily on landlord demand than on owner-occupier demand, while regulatory changes have also affected sentiment in the rental market.
Cash transactions in 2025 remained broadly in line with 2024 levels. Cash buyers accounted for 35% of all property transactions this year, down from a peak of 42% in 2023.
Gardner expects housing market activity to strengthen further in the coming quarters, particularly if the improving affordability trend observed last year continues as anticipated.
