UK house prices rose 0.3% monthly in February 2026, with annual growth at 1.0%, supported by improved affordability and rising buyer activity.

UK house prices rose 0.3% monthly and 1.0% annually in February 2026, matching January’s growth, according to Nationwide Building Society. The modest increase follows a late-2025 dip likely tied to uncertainty over upcoming property tax changes. Improved affordability and easier credit conditions supported first-time buyer activity, while total transactions in 2025 were 10% higher than in 2024. Analysts expect gradual market recovery if interest rates continue to fall, though many buyers remain cautious, waiting for further rate cuts. Over 1.8 million borrowers face higher mortgage payments as low-rate deals expire, but the worst of the crisis has been avoided.