02.03.202607:09:20UTC+00UK House Prices Rise Above Forecasts

The UK Nationwide House Price Index rose 1% year-on-year in February 2026, beating expectations of a 0.7% gain and matching January’s annual growth rate. On a monthly basis, prices increased by 0.3%, in line with forecasts and unchanged from January’s pace.

Nationwide Chief Economist Robert Gardner said the figures point to a modest recovery following a soft patch at the end of 2025, which was likely driven by uncertainty over potential property tax changes ahead of the Budget. Mortgage approvals for house purchases remained close to pre-pandemic norms.

Across 2025 as a whole, total housing market transactions were 10% higher than in 2024, supported by improved affordability and easier access to credit. First-time buyer activity rose 18% year-on-year, while home-mover purchases increased 15%. Buy-to-let activity also ticked up but remained muted, constrained by higher borrowing costs and ongoing regulatory pressures.

Gardner expects housing market activity to continue recovering over the coming quarters, assuming the recent improvement in affordability is sustained.