UK house prices tick higher in February - Halifax

UK house prices ticked up in February, industry data showed on Friday, in line with expectations.

According to the latest research from Halifax, house prices rose by 0.3% last month, following a 0.8% rise in January. A typical property now costs around £301,151.

Year-on-year, prices rose by 1.3%, the strongest rate for four months.

Amanda Bryden, head of mortgages at Halifax, said: "The housing market built on its steady start to the year in February.

"The figures suggest the market has regained some momentum after a softer end to 2025."

Data published by the Bank of England earlier this week showed a surprise slide in mortgage approvals in January.

However, Bryden said overall activity in the first two months of the year had been resilient. "There’s no doubt that affordability remains stretched, supply is constrained and regional disparities persist," she acknowledged.

"However, conditions have been gradually improving, with easing interest rates and real wage growth helping to support buyer confidence."

In its last minutes, the Monetary Policy Committee flagged further likely cuts in the cost of borrowing this year.

However, market expectations have since changed significantly, after the US attacked Iran. Escalating hostilities have broken out across the Middle East, sending oil and gas prices soaring.

Bryden said: "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."