UK house prices reached a new record high in February as annual growth hit 1.3 percent – the strongest level in four months – according to data from Halifax. The lender’s monthly index shows average property values now stand at £301,151, up around £3,000 since January. Monthly price growth came in at 0.3 percent, following a 0.8 percent rise the previous month.
Regional divide persists
Regional differences remain significant, with a clear split between stronger growth in the North and softer conditions across southern England. Northern Ireland posted the strongest annual growth at 6.3 percent, bringing average prices to £216,608. Scotland followed at 4.7 percent, with average values of £222,286. Wales saw more modest growth of 2.4 percent to £231,637. In England, the North East recorded 3.5 percent growth to £181,838, while the North West reached 2.9 percent with average prices of £246,292. Southern markets showed weakness. The South East contracted by 2.2 percent year-on-year to £282,834, while London prices fell 1 percent to £538,200.
Market momentum returns but risks mount
Amanda Bryden, head of mortgages at Halifax, said the housing market has “built on its steady start to the year” despite stretched affordability and constrained supply. “These latest figures suggest the market has regained some momentum after a softer end to 2025,” she said. “Conditions have been gradually improving, with easing interest rates and real wage growth helping to support buyer confidence.” However, Bryden warned that geopolitical uncertainties “seem set to influence the outlook for inflation and the wider economy”, with markets now expecting a more gradual path for interest rate cuts. Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, said the housing market faces “a fresh challenge” from the Middle East conflict, which has sent energy prices higher and created inflationary pressure. “Fears are now mounting that rate cuts may be delayed, or worse, that the Bank of England may even need to raise rates again to counter a fresh inflationary shock driven by surging energy prices,” she said. Haine noted that some major lenders have already announced increases to fixed rate products in response to the crisis. “First-time buyers looking to secure a loan – and homeowners needing to refinance – would be wise to lock in the best deal they can find now.” For landlords considering buy-to-let mortgage refinancing, the uncertainty adds pressure to act before rates rise further.
What this means for landlords
The regional data offers clear signals for portfolio planning. Northern markets continue to deliver stronger capital growth, while southern areas – particularly London and the South East – face ongoing price pressure. With the Bank of England’s next rate decision due on 19 March, landlords remortgaging in the coming months face heightened uncertainty around borrowing costs.
Editor’s view
The North-South divide is now entrenched. For landlords chasing capital appreciation, southern England looks increasingly unattractive – London especially. The Middle East crisis adds another layer of uncertainty to an already cautious market. Those with refinancing deadlines should move quickly rather than wait for rate cuts that may not materialise.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 6 March 2026
Sources: Halifax House Price Index
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