The UK housing market showed renewed strength at the start of the year, with average property prices climbing to a new record in February. According to the latest figures from Halifax, the average UK home now costs £301,151, following a 0.3% monthly increase.
Annual house price growth also picked up pace, rising 1.3% year-on-year, the fastest rate seen in four months. While the increase is relatively modest, it suggests the housing market is proving resilient despite ongoing affordability pressures and wider economic uncertainty.
For buyers and homeowners in areas such as Exeter and Essex, these national trends highlight just how important it is to seek professional mortgage advice when navigating a market that remains complex and regionally varied.
While UK house prices overall have risen, growth has varied widely across the country.
Northern Ireland saw the strongest annual increase, with prices rising 6.3%, while Scotland recorded growth of 4.7%. Wales also saw steady gains, with average property values increasing 2.4% year-on-year.
In England, the North East recorded price growth of 3.5%, making it one of the stronger performing regions.
However, the picture is different in many parts of southern England. Property prices in the South East fell 2.2%, while London experienced a 1% decline, highlighting how the housing market can behave very differently depending on location.
For areas like Exeter and Essex, which often attract strong demand due to lifestyle, connectivity and employment opportunities, local dynamics can differ further from the national picture. This makes understanding mortgage options and affordability particularly important for buyers.
Despite recent price growth, affordability remains one of the biggest barriers to home ownership.
Amanda Bryden, Head of Mortgages at Halifax, noted that the housing market has begun to regain some momentum after a slower end to the previous year.
She explained that activity has remained resilient overall, although affordability pressures continue to affect many prospective buyers.
Bryden said:
“These latest figures suggest the market has regained some momentum after a softer end to 2025. While industry data for January show a slight easing in new mortgage approvals, overall activity has continued to prove resilient.”
She also highlighted that limited housing supply and affordability constraints mean many buyers still face challenges, particularly those without financial support from family.
Encouragingly, easing interest rates and improving wage growth have helped boost buyer confidence in recent months, supporting demand across parts of the market.
While conditions have started to improve, global events could still influence borrowing costs.
According to Karen Noye, mortgage expert at Quilter, geopolitical developments may complicate the outlook for mortgage rates.
She warned that recent international tensions could impact financial markets and potentially slow the expected decline in mortgage pricing.
Noye said:
“While the market has enjoyed early momentum, geopolitical events may throw this into question.”
She added that rising oil prices and inflation concerns could push up swap rates, which lenders use to price many fixed-rate mortgages. This may lead some lenders to pause planned rate reductions, making it harder for buyers to determine when borrowing will become more affordable.
In a housing market shaped by fluctuating interest rates, affordability pressures and regional price differences, navigating mortgage options can be challenging.
For buyers and homeowners in Exeter, Essex and surrounding areas, working with experienced advisers can make a significant difference. Professional mortgage advice can help borrowers:
At TJD Financial Services, our experienced advisers support clients through every stage of the mortgage process, so whether you are buying your first home, moving property, or reviewing an existing mortgage.
With the housing market continuing to evolve, having the right advice in place can help ensure you make confident and informed decisions.
TJD Financial Services is a trading name of Thomas Oliver UK LLP which is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.
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TJD Financial Services Ltd is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.
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