Average house prices rose by +0.4% in February, the fifth monthly rise in a row with property prices growing +1.7% on an annual basis (vs +2.3% last month). This means the typical UK home now costs £291,699, around £1,000 more than last month.
Kim Kinnaird, Director, Halifax Mortgages, said: “UK house prices rose for the fifth consecutive month in February, up by +0.4% or £1,091 in cash terms, with the average house price now £291,699.
“On an annual basis, house prices were +1.7% higher than a year ago, slowing from +2.3% in January. However, these figures continue to suggest a relatively stable start to 2024 and align with other promising signs of increased housing activity, such as mortgage approvals.
“In fact, the average price tag of a home is now only around £1,800 off the peak seen in June 2022. While it is encouraging that we’ve seen growth in recent months, what happens next remains uncertain. Although lower mortgage rates, alongside expectations of Bank of England interest rate cuts this year, should help buyer confidence in the short term, the downward trend on rates is showing signs of fading.
“Even with growing wages and inflation falling back, raising a deposit and affording a sizeable mortgage remains challenging, especially for those looking to join the property ladder, so it remains a possibility that there could be a slowdown in the housing market this year.”
Nations and regions house prices
The North West saw positive growth of +4.4% on an annual basis to £232,128. The North East (+4.2%) and Wales (+4.1%) also recorded strong increases over the last year.
London continues to have the highest average house price across all of the regions, at £536,996. Prices in the capital have increased +1.5% and is the first positive annual growth seen since January 2023.
Properties in Eastern England fell the most last month, when compared to the rest of the UK’s nations and regions, with homes selling for an average of £329,927 (-0.8%), a drop of £2,794 since the same time in 2023.
