UK house prices grew at a steady pace in February, reflecting a moderate recovery from a fall at the end of the last year, mortgage lender Nationwide Building Society said Monday.
House prices posted an annual increase of 1.0 percent, the same rate of growth as seen in January. The rate was faster than the expected growth of 0.7 percent.
On a monthly basis, house prices logged a steady growth of 0.3 percent in February.
Data reinforces the view of a modest recovery after a dip at the end of 2025, most likely reflecting uncertainty around potential property tax changes ahead of the Budget, Nationwide’s Chief Economist Robert Gardner said.
However, the number of mortgages approved for house purchase remained close to the levels prevailing before the pandemic, he observed.
“Housing market activity is likely to recover in the coming quarters, especially if the improving affordability trend seen last year is maintained as expected,” Gardner added.
The Bank of England is slated to publish mortgage approvals data today. The number of mortgage approvals is forecast to rise to 62,000 in January from 61,013 in December.
The BoE’s monetary easing has helped to improve housing affordability. The bank has lowered the benchmark rate by 150 basis points since August 2024.
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