# Average UK house price reached a new high in February, says Halifax

By Aneisha Beveridge — 2026-03-06

Aneisha Beveridge, research director at Hamptons and Connells Group, said: “The North–South divide continues to be a key theme in the market.

“In more affordable regions, particularly across the Midlands, North and Scotland, prices are still edging up as buyers benefit from lower entry costs and improved affordability.

“But in the South, even though mortgage rates have come down from last year, they remain high compared with the pre-2022 norm.

“Coupled with sizeable stamp duty bills, this means Southern markets are still feeling more of the pressure.

“Confidence plays an outsized role in the prime markets, too.

“After a sluggish Q4, not helped by the run-up to the Budget, the new year brought an uplift in activity as mortgage rates fell and the market stabilised.

“There’s still some pressure on prices, but overall the mood has improved compared with late 2025.

“However, these higher value Southern and prime markets are also likely to be the most sensitive to shifts in expectations around interest rates.

“Recent volatility in swap rates, predominantly linked to concerns around the conflict in the Middle East and its potential inflationary effects, has already led some lenders to reprice.

“If uncertainty around the interest rate path persists, it’s these markets that are likely to feel the impact first.”

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