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Average UK House Prices Rise – What Does It mean For Buyers and Sellers?

Average UK House Prices Rise – What Does It mean For Buyers and Sellers?

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Annual UK house prices rose 1% in February, with the average property increasing to £273,176, according to Nationwide.

It’s a 0.3% monthly increase from £270,873 in January.

The table below shows how much average house prices:

 

Headlines Feb-26 Jan-26
Monthly Change* 0.3% 0.3%
Annual Change 1.8% 2.4%
Average Price
(not seasonally adjusted)
£272,998 £272,226

 

* Seasonally adjusted figure (note that monthly % changes are revised when seasonal adjustment factors are re-estimated)

The increase suggests a small recovery following a dip in house prices at the end of 2025.

Robert Gardner, Nationwide’s Chief Economist said:

“Annual house price growth remained steady at 1.0% in February. Prices increased by 0.3% month on month, after taking account of seasonal effects.

“This 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. Nevertheless, the number of mortgages approved for house purchase remain close to the levels prevailing before the pandemic.”

What does this mean for buyers and sellers?
Rising house prices could signal confidence returning to the property market following concerns around policy changes rumoured to be announced in the Autumn Budget 2025.

For sellers, an increase in property prices suggests that there’s still healthy competition for homes and an opportunity to get good value.

For buyers, getting into the best financial position is key. For example, reviewing your finances, particularly your house deposit and credit score if you’re applying for a mortgage, can help improve your chances of getting a good deal.

It’s also vital to set enough money aside for additional costs such as a house survey, legal fees and moving costs.

One way to maximise your savings is by using a top-rate savings account or Cash ISA. If you have a longer time horizon, of at least 5 years, using a Stocks and Shares ISA could help you build up a pot to help with homebuying costs.

Another product to consider is a Lifetime ISA, if you’re a first-time buyer, depending on the value of the home you’re looking to purchase.

For more tips, check out our podcast episode: The Truth About Buying a Home.

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