British house prices rose by 0.4% in February compared to January, surpassing economists’ expectations, according to mortgage lender Nationwide. This stronger-than-anticipated increase

reflects a rush among buyers aiming to complete purchases before a tax break expires next month.

The rise exceeded all predictions in a Reuters poll, which had projected a modest 0.2% monthly gain following January’s 0.1% increase.

Multiple indicators suggest a rebound in Britain's housing market, fueled by declining borrowing costs and buyers expediting purchases ahead of the expiration of a stamp duty incentive at the end of March.

Nationwide’s chief economist, Robert Gardner, noted that the impending tax change could cause short-term fluctuations in the market, with a spike in transactions in March followed by a slowdown in subsequent months, a pattern observed in past stamp duty adjustments.

Earlier this month, property website Rightmove reported that the surge in asking prices for newly listed homes was beginning to lose momentum in anticipation of the tax policy shift.

A Reuters poll released on Tuesday projected that UK house prices would rise by 3.5% in 2025, outpacing earlier forecasts, and by 4.0% in 2026, driven by expected interest rate cuts from the Bank of England.

Nationwide also reported that house prices in February were 3.9% higher than a year ago, slightly below January’s annual increase of 4.1%. Photo by I See Modern Britain, Wikimedia commons.