2 March 2026
If you are covering the latest Nationwide house price index, please see the following comment from Ian Futcher, financial planner at Quilter:
“House prices appear to be off to a steadier start in 2026 according to Nationwide’s latest house price index, rising by 0.3% in February which matches the 0.3% uptick seen in January. Annual house price growth was also unchanged, rising by 1%, which brought the average house price to £273,176.
“While this suggests a gradual recovery compared to the dip seen towards the end of last year, we are unlikely to see a marked uplift in house prices for a while yet. Residential property transactions data out last week show that despite the slight easing of mortgage rates and more competitive offerings being brought to the market by lenders, the market remains very much subdued. On a seasonally adjusted basis, residential transactions were down 5% compared to December 2025, and were marginally lower than January 2025. On a non-seasonally adjusted basis, these figures jump to a 24% drop and a 3% fall respectively.
“While lenders are vying for business and bringing cheaper products to the table, as well as higher loan to income and loan to value offerings, affordability is still stretched. With the prospect of further rate cuts throughout 2026, many will be holding out in hopes of securing a cheaper deal later down the line. Until rate cuts are more clearly evidenced and there is significant downward pressure on mortgage rates, prompting more people to put moving plans back in motion, we can expect house prices to remain relatively stagnant.
“Mortgage rates are typically set well in advance of any Bank of England interest rate changes, so if we see them ease further in the coming months as cuts are anticipated, affordability pressures will lessen. Buyer confidence has been low in recent years, but an improving rate outlook could see demand, and subsequently house prices, pick back up.”
