British house prices picked up slightly more momentum than expected in February, pointing to a tentative recovery after a late-2025 slowdown sparked by budget-related uncertainty, according

to fresh data from Nationwide Building Society.

Annual house price growth reached 1.0% in the year to February, exceeding economists’ expectations of a 0.7% rise in a Reuters poll. On a monthly basis, prices rose by 0.3%, matching January’s pace and coming in marginally above forecasts of a 0.2% increase.

The market had stumbled toward the end of last year amid concerns over potential tax and housing policy changes linked to the budget plans of finance minister Rachel Reeves. February’s figures suggest those fears may be easing.

Robert Gardner, Nationwide’s chief economist, said the data supports the view that the housing market is stabilising after last year’s dip. “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,” he said. Gardner added that mortgage approvals remain close to pre-pandemic levels, underlining continued underlying demand.

Further insight into market conditions is expected later on Monday, when the Bank of England publishes its latest mortgage approval figures. Economists anticipate a modest increase in approvals for January, a key leading indicator of future house purchases.

Investors are also watching monetary policy closely, with many betting the BoE will cut its main interest rate to 3.5% this month, a move that could offer further support to the housing market.

For now, the data paints a picture of cautious resilience in the UK housing market, with modest price growth and steady mortgage activity despite lingering economic uncertainties.