UK house prices reached a new record level in February, with the average property valued at £301,151, according to the latest data published by Halifax on Friday.
House prices increased by 0.3% in February, following a stronger 0.8% rise in January. On an annual basis, price growth accelerated to 1.3%, compared with 1.1% in January, marking the fastest yearly increase in four months. Since the beginning of the year, average UK house prices have risen by roughly £3,000.
According to Amanda Bryden, Head of Mortgages at Halifax, the housing market maintained its steady momentum during February. She noted that the latest figures suggest the market has started to recover after a weaker period toward the end of 2025.
Regional differences in UK house prices
Regional disparities in the UK housing market remain significant. Northern Ireland continues to lead price growth across the country, with average house prices rising 6.3% year-on-year to reach £218,608.
Scotland also recorded strong annual growth of 4.7%, pushing the average property price to £222,286. In Wales, house prices increased by 2.4% over the past year, with the average home now valued at £231,637.
Across England, stronger growth continues to be concentrated in northern regions. In the North East, house prices increased 3.5% annually, bringing the average property value to £181,838. The North West also recorded solid growth of 2.9%, with typical home prices reaching £246,292.
By contrast, housing markets in the south of England have seen prices soften. The South East recorded the largest decline, with average property values falling 2.2% year-on-year to £383,834. Meanwhile, London house prices dropped 1.0%, leaving the average property value at £538,200.
Mortgage approvals and home sales decline
Recent industry data suggests a slight slowdown in housing activity. Figures from the Bank of England show that mortgage approvals for house purchases fell 1.7% in January, dropping to 59,999 approvals.
Compared with the same month last year, mortgage approvals were 9.6% lower than in January 2025.
At the same time, UK home sales also declined. Seasonally adjusted residential property transactions totaled 94,680 in January, representing a 5% decrease from December’s 99,710 transactions.
Despite these challenges, Bryden noted that the housing market still faces ongoing pressures. Affordability constraints, limited housing supply, and regional price disparities continue to shape market conditions.
However, there are signs that conditions are gradually improving. Falling interest rates and rising real wages are helping support buyer confidence and may strengthen housing demand in the coming months.
The January RICS Residential Market Survey also indicated early signs of improvement in the housing market. New buyer enquiries increased, with the net balance rising from -21% to -15%, while agreed home sales improved from -18% to -9%.
Looking ahead, Bryden said geopolitical uncertainties could influence the outlook for inflation and the broader economy. As a result, financial markets are increasingly expecting a more gradual path for future interest-rate cuts.
