Annual house price growth remained unchanged in February at 1%, with the average UK house price standing at £273,176, Nationwide has revealed.

The building society’s latest house price index also showed that month-on-month, house price growth increased by 0.3%, matching the same increase in January.

Chief economist at Nationwide, Robert Gardner, said that the latest figures reinforced the view of a modest recovery after a dip at the end of 2025, which reflected uncertainty ahead of the Autumn Budget.

He stated: "Nevertheless, the number of mortgages approved for house purchase remain close to the levels prevailing before the pandemic.

"Looking across 2025 as whole, total housing market transactions were 10% higher than in 2024. As we explored in our Housing Affordability Report, improved affordability and an easing in credit availability has helped to support first-time buyer activity, with mortgage completions up 18% year on year.

"Home mover transactions involving a mortgage have also recovered over the past year, with activity up 15% year on year. There has also been a gradual increase in the number of buy to let purchases involving a mortgage, although activity remains quite subdued compared to historic levels, reflecting the continued headwinds impacting this part of the market."

Personal finance analyst at Bestinvest, Alice Haine, added that this rebound in activity has been largely driven by an increase in sellers listing their homes. This figure has increased by 6% year-on-year.

She said: "An increase in the number of properties on the market is likely to prove positive for buyers - many of whom remain concerned about economic uncertainty, cost-of-living pressures and elevated interest rates - as greater choice may place them in a stronger position to negotiate on price. However, this could temper house price growth if sellers are forced to keep pricing realistic to secure a sale."

Haine also said the impact of the new mansion tax, which will be introduced from April 2028, may have a dampening effect on the upper end of the market.

She concluded: "Meanwhile, that surprise two-percentage-point property income tax hike – set to go live in April next year – is likely to hit the buy-to-let sector hard, with many landlords, who have already endured years of tax and regulatory changes, already heading for the exit.

"But there is some positive news for movers to latch on to. The early-year pickup in stock levels will be positive for movers looking to progress transactions. Plus, affordability levels are slowly improving, with mortgage rates easing significantly over the past year, supported by six interest rate cuts since August 2024."

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