The housing market has built on its steady start to the year, with average prices rising by +0.3% in February.

The Halifax says this follows an increase of +0.8% in January. 

Annual growth also picked up to +1.3%, its strongest rate for four months. 

Since the start of the year, average prices have increased by around £3,000, with a typical property now costing £301,151.

Halifax mortgages chief Amanda Bryden says: “These latest figures suggest the market has regained some momentum after a softer end to 2025. 

“While industry data for January show a slight easing in new mortgage approvals, overall activity has continued to prove resilient.

“There’s no doubt that affordability remains stretched, supply is constrained, and regional disparities persist. 

“For those without family support, the path to home ownership feels particularly challenging.

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

“Looking ahead, 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.”