UK House Prices Hit New Record High in February 2026

Halifax February 2026 Data

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 — a new record high and 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.

Market Activity Slowing

The pricing data come against a backdrop of softer transaction volumes. HMRC 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.

Bank of England figures show that mortgage 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.

What Halifax Says

Amanda Bryden, head of mortgages at Halifax, commented: "The housing market built on its steady start to the year in February. These latest figures suggest the market has regained some momentum after a softer end to 2025."

She added: "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."

Regional Breakdown: North Outpaces South

Halifax's regional data underlines a stark divergence between northern and southern markets:

• Northern Ireland: +6.3% annual growth — average price £218,608
• Scotland: +4.7% — average £222,286
• North East England: +3.5% — average £181,838
• North West England: +2.9% — average £246,292
• Wales: +2.4% — average £231,637
• South East England: −2.2% — average £383,834
• London: −1.0% — average £538,200

For buyers looking at the most affordable areas to buy, the northern regions continue to offer stronger value and momentum.

What's Next for House Prices?

Bryden cautioned: "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."

Survey evidence from RICS points to a tentative improvement in sentiment — buyer enquiries and agreed sales are both recovering, although new instructions have slipped slightly. The combination of inflation uncertainty and constrained supply means house prices are likely to continue rising modestly rather than dramatically in the months ahead.

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