UK house prices remained broadly steady in February, dipping 0.1% month-on-month to £298,602 and maintaining a steady annual growth.
In January, Halifax’s (LLOY.L) monthly house price index (HPI) reported annual house prices had hit £298,815.
“February’s figures highlight the delicate balance within the UK housing market. While there’s been talk of a last minute rush on new mortgages ahead of the changes to stamp duty, inevitably we’ve seen some of the demand that was brought forward start to fade as the April deadline ticks closer, given the time needed to complete a purchase,” said Amanda Bryden, head of mortgages at Halifax (LLOY.L).
“That may help to explain why growth in first-time buyer property prices eased in February, falling to +2.4%, in contrast to home mover price inflation which accelerated, reaching +3.7%,” she added.
The data shows that most areas of the UK were privy to a house price inflation slowdown in in February.
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London saw annual house price growth ease considerably from 2.6% in January to 1.6% in February. The capital still has by far the most expensive average property price in the UK, at £545,183.
Bucking the trend most notably was Scotland, which saw annual growth increase to 3.8% compared to 2.5% in January, with an average house price of £213,014.
Northern Ireland continues to have the strongest annual property annual price growth in the UK, largely unchanged at 5.9% in February. Properties in Northern Ireland now cost an average of £205,784.
House prices in Wales were up 2.8% compared to the previous year, with properties valued at an average of £226,811.
In England, Yorkshire and Humberside recorded the strongest annual property price growth for the first time since July 2021, up 4.1% compared to the previous year, with properties now costing an average £216,130.
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Looking ahead, upcoming stamp duty changes — scheduled to take effect in April — are likely to prompt a short-term surge in transactions as buyers aim to avoid the additional tax.
“Whilst the impending stamp duty deadline has been a contributing factor behind an increased level of market activity, we’ve seen many buyers factor in a potential cost increase from the off, which suggests that any correction that does come as of the 1 April will be minimal,” said Stephanie Daley, director of partnerships at mortgage advisor, Alexander Hall.
“The expectation is that the market will continue to go from strength to strength as we approach the busy summer selling season, with buyer sentiment strengthened further by the prospect of further interest rate reductions.”
