9:18 AM, 7th March 2025, About 2 months ago
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The average UK house price dipped in February by 0.1% to £298,602, though year-on-year prices rose by 2.9% – unchanged from January.
Northern Ireland saw the highest yearly growth of 5.9% growth, with average prices at £205,784, and Scotland’s prices grew by 3.8%.
Welsh properties saw a 2.8% increase, averaging £226,811, while Yorkshire and Humberside saw the strongest English regional growth at 4.1%.
London’s house price growth slowed to 1.6% and remains the most expensive region with average properties valued at £545,183.
Amanda Bryden, the head of mortgages at Halifax, said: “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.”
She added: “That may help to explain why growth in first-time buyer property prices eased in February, falling to +2.4%, in contrast to homemover price inflation which accelerated, reaching +3.7%.
“While house price growth has slowed overall, market activity remains strong and comparable to pre-pandemic levels, demonstrating a resilience amongst buyers that’s been evident in the face of higher borrowing costs.”
Nathan Emerson, the chief executive of Propertymark, said: “An increase in house prices is an encouraging trend that has been reflected in other recent reports.
“The latest Bank of England Money and Credit Report also found that mortgage lending rose to 1.8% in January 2025 from 1.5% in December.
“This should help enhance confidence as people purchase their next home.”
Matt Thompson, the head of sales at Chestertons, said: “In February, the property market saw a higher volume of enquiries from parents who are looking for a property in catchment areas of highly rated state schools.
“This resulted in larger family homes attracting interest from multiple buyers.
“With the introduction of sub-4% mortgages, we also witnessed growing buyer confidence amongst second steppers and, despite to the looming changes to Stamp Duty, still registered a number of first-time buyers who are eager to get on the property ladder.”
Jeremy Leaf, a north London estate agent and a former RICS residential chairman, said: “A strong appetite to buy for some is almost matched by others wanting to ensure the increasing availability of stock has been properly appraised and best terms negotiated before proceeding.
“Prices, especially for houses, are holding up well, supported by income growth exceeding inflation but will come under pressure, particularly now it is probably too late to take advantage of the stamp duty concession.
“Employer concerns about increasing national insurance and minimum wage commitments are not helping confidence either.”
Tom Bill, the head of UK residential research at Knight Frank, said: “Despite a rush to complete ahead of the stamp duty increase in April, supply outpaced demand in the first two months of this year, which kept downwards pressure on house prices.
“That pressure will be sustained if more inflation creeps into the UK economy through measures such as raising employer national insurance contributions.
“We were also reminded this week of how global politics can act as a brake on the market when Germany announced a defence spending increase, which pushed up borrowing costs in Europe.
“We expect low single-digit house price growth this year, but the outlook is changeable.”
