UK house prices edge higher as growth remains subdued

UK house prices continued to rise modestly in February, with data showing a subdued but steady property market amid broader economic uncertainty.

The average UK house price increased by 0.1% over the month, while annual house price inflation stood at 1.2% in the 12 months to February 2026.

The figures put the average UK home price at approximately £268,000, reflecting a market that is still growing, but at a historically restrained pace.

The latest data suggests the housing market remains broadly stable, though momentum is limited compared with previous cycles of rapid price growth.

Analysts say the modest monthly increase points to continued caution among buyers, with affordability constraints and higher borrowing costs still weighing on demand. Despite the subdued conditions, prices have continued to inch upwards annually, indicating that supply remains tight in parts of the market even as economic uncertainty persists.

Overall, the figures point to a housing market that is neither overheating nor contracting sharply — but instead moving slowly forward in line with the wider sluggish economic backdrop.

Managing Director of House Buyer Bureau, Chris Hodgkinson, said: “For all of the talk that the property market is improving, we’re still seeing a growing number of sales collapse, and many sellers are simply giving up and withdrawing from the market altogether because they have become exhausted by the process and a lacklustre level of buyer activity.

“The reality is that selling a home remains a long, uncertain and often costly experience. Buyers are taking longer to commit, affordability remains stretched, and chains are still incredibly fragile.”

Verona Frankish, CEO of Yopa, added: “Whilst the rate of house price growth remains fairly modest, the fact that prices are still moving in the right direction demonstrates that the market continues to hold firm despite a tougher economic backdrop.

“Buyers have spent the last year adapting to a world of higher borrowing costs and greater uncertainty and, as a result, we’re now seeing a far more stable and sustainable market emerge, built on realism rather than rapid price inflation.”

Director of Benham and Reeves, Marc von Grundherr, said: “The latest figures show that the UK housing market remains remarkably resilient, with house prices holding firm despite renewed pressure on mortgage affordability and wider economic uncertainty.

“London continues to lag the rest of the UK, with values down 3.3% year-on-year, but the capital remains a market of huge value and importance as a destination of choice for both domestic and international homebuyers.”