Halifax Bank, the largest mortgage lender in the United Kingdom, announced that house prices increased by 0.3% in February following a 0.8% rise in January, bringing the average property price to £301,151. Compared to January 2026, prices rose by around £3,000, recording an annual increase of 1.3%.
Amanda Bryden from Halifax stated that the market has partially regained momentum, despite mortgage approvals declining by 1.7% in January, falling to below 60,000 loans. On an annual basis, approvals dropped by 9.6% between January 2026 and January 2025, according to data from the Bank of England.
“Swap” rates used to determine mortgage pricing reached their highest level in a month, leading to increased costs for fixed-rate mortgage deals. Bryden noted that geopolitical uncertainty could slow the pace of interest rate cuts, keeping borrowing costs relatively high for some time.
At the same time, affordability challenges and housing availability issues remain persistent, with many households facing significant difficulty purchasing homes without family financial support.
Regionally, Northern Ireland recorded the strongest annual price growth of 6.3%, with the average property price reaching £218,608. It was followed by Scotland with 4.7% growth and an average price of £222,286, and Wales with 2.4% growth, bringing the average price to £231,637.
In England, northern regions recorded the largest gains, with prices rising 3.5% in the North East to £181,838 and 2.9% in the North West to £246,292. In contrast, southern regions of England saw price declines, with the South East falling by 2.2% to £383,834, while the average property price in London dropped by 1% to £538,200.
