(March 6): UK house prices racked up another record high in February before the fallout from conflict in the Middle East threatened to disrupt the mortgage market.
Halifax, one of the UK’s biggest mortgage lenders, said average prices climbed 0.3% to £301,151 (US$403,000 or $513,974.41), a second straight monthly rise. On an annual basis, valuations were 1.3% higher, the strongest in four months.
While it continued a strong start to the year for house prices after 2025’s patchy performance, the US-Israel war with Iran could prevent further falls in interest rates that have been supporting the property market.
Moneyfacts said earlier this week that a number of lenders were pausing plans to cut mortgage rates further. Swap rates used to price home loans have risen sharply on expectations that the Bank of England will delay interest-rate cuts in response to rising energy prices.
Domestic factors may also weigh on demand for housing, with unemployment rising above 5% to its highest since the pandemic.
Halifax’s data chimed with recent figures from Nationwide Building Society that showed prices climbing 0.3% in February.
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