The UK Nationwide House Price Index rose 1% year-on-year in February 2026, exceeding expectations of a 0.7% increase and matching January’s pace. On a monthly basis, prices went up 0.3%, in line with forecasts and the same pace as in January. Nationwide Chief Economist Robert Gardner noted this reflects a modest recovery following a dip at the end of 2025, likely linked to uncertainty over potential property tax changes ahead of the Budget. Mortgage approvals for house purchases remained close to pre-pandemic levels. Over 2025, total housing market transactions were 10% higher than in 2024, supported by improved affordability and easing credit availability. First-time buyer activity increased 18% year-on-year, home mover purchases up 15%, while buy-to-let activity edged higher but stayed subdued due to rates and regulatory headwinds. Gardner expects activity to continue recovering in coming quarters if affordability trends persist.