Halifax data shows UK average house price reaching new high
UK house prices rose again in February, with Halifax reporting a modest gain that extends the housing market’s early‑year recovery.
The lender’s latest House Price Index shows average values up 0.3% month on month, following a 0.8% rise in January. The typical UK property now stands at £301,151, around £3,000 higher than at the start of the year.
Annual growth climbed to 1.3%, the strongest rate in four months and up from 1.1% in January.
“The housing market built on its steady start to the year in February,” said Amanda Bryden (pictured right), head of mortgages at Halifax. “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.”
The pricing data come against a backdrop of softer transaction volumes. HM Revenue & Customs recorded 94,680 seasonally adjusted UK residential sales in January, 5% lower than December’s 99,710. On a three‑month view, completed sales between November 2025 and January 2026 were 1.3% higher than in the previous quarter, but remained 0.8% below January 2025 levels on a seasonally adjusted basis.
Bank of England figures show that approvals for house purchase also eased at the start of the year. The number of loans agreed for homebuyers fell by 1.7% in January to 59,999, leaving approvals 9.6% below their level a year earlier.
Survey evidence from the Royal Institution of Chartered Surveyors points to a tentative improvement in sentiment. In the January 2026 RICS Residential Market Survey, the net balance of new buyer enquiries moved from -21% to -15%, while the reading for agreed sales improved from -18% to -9%. New instructions slipped slightly, with the balance dipping to -1% from +1%.
“Conditions have been gradually improving, with easing interest rates and real wage growth helping to support buyer confidence,” Bryden said. “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.”
Stronger price growth in cheaper northern markets offsets southern falls
Halifax’s regional breakdown underlines the divergence between markets in the north and south of the UK. Northern Ireland remains the strongest performer, with average prices up 6.3% over the year to £218,608. Scotland posted annual growth of 4.7%, taking the typical property value to £222,286, while Wales recorded a 2.4% increase to £231,637.
Within England, northern regions continue to show comparatively better momentum. In the North East, average prices rose 3.5% year on year to £181,838. The North West saw annual growth of 2.9%, with the average home now costing £246,292.
By contrast, the more expensive southern markets are still seeing gentle price declines. The South East registered the sharpest falls, with values down 2.2% on the year to £383,834. In London, average prices slipped by 1.0% to £538,200.
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