House price growth was steady in February, says Nationwide

House price growth was “steady” in February and activity in the market is expected to pick up in the months ahead, Britain’s biggest building society has reported.

The average UK house price increased by 0.3% month-on-month in February, Nationwide Building Society said.

Property values also rose by 1.0% annually, with both rates of increase being unchanged compared with January.

The typical house price in February was £273,176.

Robert Gardner, Nationwide’s chief economist, said: “Annual house price growth remained steady at 1.0% in February. Prices increased by 0.3% month-on-month, after taking account of seasonal effects.

“This reinforces the view of a modest recovery after a dip at the end of 2025, most likely reflecting uncertainty around potential property tax changes ahead of the Budget.”

Mr Gardner added: “Housing market activity is likely to recover in the coming quarters, especially if the improving affordability trend seen last year is maintained as expected.”

He said that, looking across 2025 as whole, total housing market transactions were 10% higher than in 2024.

Mr Gardner said improved affordability and an easing in credit availability “has helped to support first-time buyer activity”.

Alice Haine, a personal finance analyst at Bestinvest by Evelyn Partners, said: “UK inflation had been expected to ease back sharply to the Bank of England’s target of 2% by April, with the cocktail of rising unemployment, sluggish economic growth and slowing wage growth expected to provide enough impetus for the (Bank of England) to vote for another 25 basis-point reduction (in the base rate).

“However, an increasingly uncertain geopolitical backdrop amid renewed tensions in the Middle East may scupper that expectation if energy prices rise dramatically and supply chains are disrupted by the conflict.”

She said many borrowers on one of the 1.8 million fixed-rate mortgages due to end this year are rolling off ultra-low five-year fixed-rate mortgages into a much higher interest rate environment.

“They face refinancing at much higher rates than their current deal, which will put pressure on disposable incomes, though they can take comfort that they have avoided the worst of the mortgage crisis.”

Iain McKenzie, chief executive of The Guild of Property Professionals, said: “While geopolitical uncertainties could influence inflation, the broader trajectory points towards easing monetary policy and improving buyer confidence.

“In this environment, sales volumes are likely to strengthen, and the market should continue its steady, sustainable recovery.”

Mark Harris, chief executive of mortgage broker SPF Private Clients, said another cut in the Bank of England base rate would “provide a welcome boost as the weather continues to improve and we move into the traditionally busier spring market”.

Ian Futcher, a financial planner at wealth manager Quilter, said: “We are unlikely to see a marked uplift in house prices for a while yet.

“Residential property transactions data out last week show that despite the slight easing of mortgage rates and more competitive offerings being brought to the market by lenders, the market remains very much subdued.”

He added: “With the prospect of further rate cuts throughout 2026, many will be holding out in hopes of securing a cheaper deal later down the line.

“Until rate cuts are more clearly evidenced and there is significant downward pressure on mortgage rates, prompting more people to put moving plans back in motion, we can expect house prices to remain relatively stagnant.

“Mortgage rates are typically set well in advance of any Bank of England interest rate changes, so if we see them ease further in the coming months as cuts are anticipated, affordability pressures will lessen.”

Nathan Emerson, chief executive of property professionals’ body Propertymark, said: “Propertymark member agents continue to report that well-priced homes are attracting strong interest.”

Tom Bill, head of UK residential research at Knight Frank, said: “Activity levels have been solid but unspectacular in recent weeks but demand will strengthen if mortgage rates continue to head lower.”