Kim Kinnaird, Director, Halifax Mortgages, said: “The average house price in February was £285,476, +2.1% up on this time last year, and has been stable over the last three months.
“When comparing to January, there was a +1.1% increase in house prices through the month of February, although overall prices are flat compared to three months ago. Recent reductions in mortgage rates, improving consumer confidence, and a continuing resilience in the labour market are arguably helping to stabilise prices following the falls seen in November and December. Still, with the cost of a home down on a quarterly basis, the underlying activity continues to indicate a general downward trend.
“In cash terms, house prices are down around £8,500 (-2.9%) on the August 2022 peak but remain almost £9,000 above the average prices seen at the start of 2022 and are still above pre-pandemic levels, meaning most sellers will retain price gains made during the pandemic. With average house prices remaining high housing affordability will continue to feel challenging for many buyers.”
Nations and regions house prices
The rate of annual growth slowed in all nations and regions in February.
Annual growth reduced most significantly in the North East, at +1.1% in February vs a rise of +3.6% in January, with homes now costing an average £163,953.
Average house prices in London are now £526,842, down by -0.9% over the last year. London may be affected by its large proportion of flats – prices for which have broadly stagnated. Despite this slowdown, homes in London still cost over £240,000 more than the UK national average.
Annual growth fell the least in Scotland. House prices in the nation are now an average £198,779 (a growth rate of +2.2%, vs +2.3% in January).
Similarly in Wales, annual growth in February was +1.2% (vs +1.9% in January), with homes costing £210,917, on average.
Those purchasing a home in Northern Ireland will now pay £185,009, on average, an annual growth rate of +5.7% (vs +7.0% in January).
Property types
By property type, prices of flats are now into negative territory over the past 12 months (-0.3% annual growth), while prices for terraced properties have broadly stagnated (+0.3%). For detached properties, these have increased by just +1.5% on the year, the lowest rise since the end of 2019.
Annual price inflation remains stronger for new houses (+6.6%, a four-month high) than for existing properties (+1.1%, unchanged at the lowest in nearly a decade).
