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Annual house price growth unchanged at 1% as they are up 0.3% month-on-month

ended 02. March 2026

Annual house price growth is unchanged at 1% with house prices up 0.3% month-on-month, Nationwide's House Price Index showed.

The average price in the UK is now £273,176, up from £270,873 last month.

Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, said: “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. Nevertheless, the number of mortgages approved for house purchase remain close to the levels prevailing before the pandemic.

“Looking across 2025 as whole, total housing market transactions were 10% higher than in 2024. As we explored in our Housing Affordability Report, improved affordability and an easing in credit availability has helped to support first-time buyer activity, with mortgage completions up 18% year on year.

“Home mover transactions involving a mortgage have also recovered over the past year, with activity up 15% year on year.

“There has also been a gradual increase in the number of buy to let purchases involving a mortgage, although activity remains quite subdued compared to historic levels, reflecting the continued headwinds impacting this part of the market. For example, the higher interest rate environment tends to exert more of a drag on landlord demand (rather than owner occupier), while changes to the regulatory environment have also impacted landlord sentiment.

“Cash transactions last year were at a similar level to 2024. In recent years, there had been something of a decline in the share of cash purchases, which accounted for 35% of transactions in 2025, down from a peak of 42% in 2023.

“Housing market activity is likely to recover in the coming quarters, especially if the improving affordability trend seen last year is maintained as expected.”

  • What is your reaction to the findings?
  • Is the housing market bouncing back?
  • What are your predictions for 2026?

Responses asap please.

6 responses from the Newspage community

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Babek Ismayil
CEO at homebuying platform OneDome
Though the Budget resulted in a sluggish fourth quarter last year, the one positive amid the fiscal uncertainty was ongoing improvements in affordability. Lenders have been doing their utmost to help first-time buyers get onto the ladder and it’s starting to show with transaction levels up. Mortgage rates have also been edging down this year as lenders priced in the likelihood of further rate cuts but clearly events in the Middle East over the weekend could prove inflationary and now delay any cuts. It’s currently a very fluid situation.
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Shaun Sturgess
Director at Sturgess Mortgage Solutions
It's been a strong start to 2026 to date with falling mortgage rates at higher loan-to-values and lender affordability improvements oiling property transactions. But following the weekend's events and strikes on Iran, oil has suddenly become the operative word. The recovery in the property market the Nationwide alludes to could be derailed quite quickly if oil prices continue to rise sharply. The Bank of England's forecasts, suggesting inflation would be back at around target in the not-too-distant future, are now under threat, as is the prospect of rate cuts in the first half of the year. There is every chance swap, and in turn mortgage rates, could start to rise again, which could nip the growing momentum in the bud. It's going to be a pivotal week ahead.
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Tony Redondo
Founder at Cosmos Currency Exchange
Nationwide’s data reveals a UK housing market shaking off its 2025 "Budget jitters." While 1% annual growth appears modest, the 0.3% monthly uptick and 10% rise in total transactions suggest a steady recovery rather than a volatile bounce. The market is currently undergoing a "rebalancing" act. While landlords retreat due to higher rates and regulation, first-time buyers are filling the void, buoyed by an 18% surge in mortgage completions and improved credit availability. For 2026, the outlook is one of "stable growth." As the Bank of England likely continues a cautious cutting cycle, mortgage rates should drift lower, further supporting affordability. I predict house prices will rise between 2% and 4% this year, with transaction volumes returning to pre-pandemic norms. Regional markets in the North and Scotland will likely outperform the South, as buyers seek value. 2026 will be defined by "sensible" activity where wage growth finally outpaces property price inflation.
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Andrew Montlake
CEO at Coreco
Prices rose slightly in February but that could turn quite quickly after this weekend's events in the Middle East. The impact on the UK economy could be profound. Domestically, more rate cuts this year by the Bank of England were priced in but this now looks far less likely as oil prices are already headed north and could potentially rise sharply. There is every chance swaps will start to move up on Monday, which will be a blow to borrowers. The UK economy and property market, which so desperately needs a rate cut or two, may now have to wait longer. Expect a turbulent week ahead.
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Justin Moy
Managing Director at EHF Mortgages
The House Price Index can mask a multitude of changes within the proeprty sector; these figures don't always paint the whole scene. First Time Buyers ignoring leasehold properties and looking to jump halfway up the property ladder, whilst landlords quietly pick up those flats at reduced prices. Certainly, a lack of single FTB applicants, as combed applicants, on even a modest minimum wage can achieve around £300k on a mortgage, assuming little other outgoings. Higher mortgages, longer terms, and less need to move every few years. Locking into the future with the family's blessing.
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Emma Jones
Managing Director at Whenthebanksaysno.co.uk
Prices rose in February, with affordability a key driver, but a lot has changed in the first two days of March. Inflation falling is no longer guaranteed if oil prices soar and that could jeopardise a rate cut by the Bank of England. Brokers will be watching how swap rates react throughout Monday and there's every chance rates could start to rise again.