UK house prices held steady in February with annual growth unchanged at 1.0 percent and a 0.3 percent monthly rise, according to the latest data from Nationwide Building Society. The average property price now stands at £273,176, as improved affordability continues to support buyer activity across the market.
Buy-to-let activity edges higher despite headwinds
Robert Gardner, chief economist at Nationwide, said the 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.” He noted that mortgage approvals for house purchase remain close to pre-pandemic levels.
Total housing market transactions were 10 percent higher in 2025 compared with 2024, with first-time buyer mortgage completions up 18 percent year on year. Home mover transactions involving a mortgage also recovered, rising 15 percent over the same period.
For landlords, Gardner highlighted that there has been “a gradual increase in the number of buy-to-let purchases involving a mortgage, although activity remains quite subdued compared to historic levels.” He attributed this to the higher interest rate environment, which “tends to exert more of a drag on landlord demand than owner occupier,” alongside changes to the regulatory environment that have “impacted landlord sentiment.”
Market outlook turns cautiously optimistic
Cash transactions accounted for 35 percent of all purchases in 2025, down from a peak of 42 percent in 2023. Gardner added that “housing market activity is likely to recover in the coming quarters, especially if the improving affordability trend seen last year is maintained as expected.”
This follows LK’s report on property transactions rising 5 percent into 2026, suggesting the market recovery is continuing despite regulatory pressures on landlords. The latest figures indicate that trend is stabilising rather than accelerating.
Jonathan Hopper, chief executive of Garrington Property Finders, said the market had seen a “rinse and repeat” of January’s gains, with the average home rising in value by a further £2,303 in February. “The rising prices are first and foremost the result of the uncorking of demand that many would-be buyers kept bottled up during an uncertain 2025,” he said.
However, Hopper warned that geopolitical risks could disrupt the recovery. “It’s too early to say whether the conflict in Iran will upset the progress seen so far. A spike in oil prices and the associated inflation risk could dash hopes for further interest rate cuts,” he added. “The more immediate question is whether the Chancellor will use tomorrow’s Spring Statement to offer some support to the housing market after the Treasury enjoyed bumper tax receipts in January.”
Nathan Emerson, chief executive of Propertymark, said the figures “show continued upward movement in house prices, reflecting resilient demand in many parts of the UK despite ongoing affordability constraints.” He warned that “without increasing the number of homes available, sustained price growth risks further stretching affordability.”
Tom Bill, head of UK residential research at Knight Frank, cautioned that “house price growth was flat in February as the post-Budget bounce tailed off.” He noted that “a period of domestic political uncertainty caused by a Labour leadership challenge could take the edge off any recovery.”
Separate HMRC data released today showed 94,680 residential transactions in January 2026, slightly below January 2025 and 5 percent lower than December 2025, reflecting seasonal patterns rather than underlying weakness.
What this means for landlords
- If you are considering expanding your portfolio: BTL mortgage activity is picking up gradually, and lenders are competing for business as rates edge lower – but act carefully given ongoing regulatory uncertainty.
- Watch for: Tomorrow’s Spring Statement could bring housing market support – or further tax changes. Oil price movements may also affect interest rate expectations.
- Political risk: Instability could affect mortgage rates if bond markets react negatively to any leadership changes, adding borrowing cost risk.
- Bottom line: Steady prices and improving lending conditions create opportunities for well-capitalised landlords, but the sector remains subdued compared with pre-2016 levels.
Editor’s view
Flat growth sounds dull, but for landlords it represents something valuable: predictability. After years of policy shocks and rate volatility, a market that moves sideways while lending conditions improve gives space to plan. The gradual return of BTL mortgage activity suggests some investors see value – even if the sector’s best days may be behind it. Tomorrow’s Spring Statement could either consolidate these gains or introduce fresh uncertainty.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 2 March 2026
Sources: Nationwide Building Society, HMRC, Propertymark, Knight Frank, Garrington Property Finders
Related reading: 40% of UK homes now cheaper to buy than rent as mortgage rates fall
