House price growth remained steady in February

The UK housing market is projected to recover in the coming quarters, according to a recent report from Nationwide.

This anticipated rebound is influenced by various factors, including interest rate trends and supportive government policies aimed at stimulating the market.

In February, house price growth was characterised as “steady,” suggesting a stabilisation in the market’s performance.

Industry analysts believe that this trend could lead to increased market activity in the months ahead, as potential buyers and sellers regain confidence in the housing sector.

As of February, the average house price across the UK stood at a consistent £273,176. This steadiness in prices is likely to provide reassurance for both investors contemplating new opportunities and homeowners concerned about their property values amidst economic fluctuations.

Furthermore, property values have shown an annual increase of 1.0%, with this growth rate remaining unchanged since January, indicating a stable market environment.

With the typical house price remaining at £273,176, this reflects the overall resilience of the housing market as it navigates potential challenges ahead.

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.”

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.”

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.”