Halifax House Price Index – February

House prices rose in February as market maintains early-year momentum

House prices increased by +0.3% in February, following a +0.8% rise in January
Average property price is now £301,151, edging up to another new high
Annual growth of +1.3% is strongest in four months, up from +1.1% in January
Northern Ireland and Scotland continue to post highest annual percentage growth

Amanda Bryden, Head of Mortgages, Halifax, said:

“The housing market built on its steady start to the year in February, with average prices rising by +0.3%, following an increase of +0.8% in January. Annual growth also picked up to +1.3%, its strongest rate for four months. Since the start of the year, average prices have increased by around £3,000, with a typical property now costing £301,151.

“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.

“There’s no doubt that affordability remains stretched, supply is constrained, and regional disparities persist. For those without family support, the path to home ownership feels particularly challenging.

“However, conditions have been gradually improving, with easing interest rates and real wage growth helping to support buyer confidence. As ever, timely and expert advice remains key to helping more people achieve their goal of stepping onto the property ladder.

“Looking ahead, geopolitical uncertainties seem set to influence the outlook for inflation and the wider economy. Against that backdrop, markets are now anticipating a more gradual path for interest‑rate reductions. If realised, the speed at which borrowing costs ease may be tempered.”

Nations and regions house prices

Regional differences in house price performance remain significant, with a clear split between stronger growth in the North and softer conditions in the South.

Northern Ireland continues to lead the UK, with average prices up +6.3% over the past year to £218,608. Scotland also recorded strong growth, rising +4.7% annually to an average price of £222,286.

Elsewhere, Wales saw a more modest increase of +2.4% on annual basis, taking the typical home value to £231,637.

Within England, stronger price growth remains concentrated in northern regions. The North East saw prices rise +3.5% over the year to £181,838, while the North West recorded annual growth of +2.9%, with the average home now costing £246,292.

By contrast, the more expensive southern markets continue to see prices ease. The South East led declines, with prices down -2.2% year‑on‑year to £383,834, while London saw average values fall by – 1.0% to £538,200.

Housing activity

HMRC monthly property transaction data – UK home sales decreased in January 2026. UK seasonally adjusted (SA) residential transactions in January 2026 totalled 94,680 – down by -5.0% from December’s figure of 99,710 (down -24.4% on a non-SA basis). Quarterly SA transactions (November 2025 – January 2026) were approximately +1.3% higher than the preceding three months (August 2025 – October 2025). Year-on-year SA transactions were -0.8% lower than January 2025 (-3.0% lower on a non-SA basis). (Source: HMRC)
Latest Bank of England figures show the number of mortgages approved to finance house purchases decreased in January 2026 by -1.7% to 59,999. Year-on-year the figure was -9.6% below January 2025. (Source: Bank of England, seasonally-adjusted figures)
The January 2026 RICS Residential Market Survey points to early signs of improvement in the sales market. New buyer enquiries rose from a net balance of -21% to -15%, and agreed sales improved from -18% to -9%. New instructions softened slightly to -1% from +1%. (Source: Royal Institution of Chartered Surveyors (RICS) monthly report)