UK House prices dipped by -0.1% in February (vs +0.6% in January) with average property price now £298,602 (compared to £298,815 in previous month. This is according to the latest Halifax House Price Index, which also revealed that annual growth remains at +2.9%, unchanged from January.
The price trends were markedly different in certain regions, specifically in Scotland, which saw house prices rise at fastest pace in 13 months (+3.8%).
Commenting on the latest numbers Halifax head of mortgages Amanda Bryden said that February’s figures highlighted 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.
“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%
Bryden pointed out that while house price growth had slowed overall, market activity remained strong and comparable to pre-pandemic levels, demonstrating a resilience amongst buyers that’s been evident in the face of higher borrowing costs
“While those affordability challenges persist, the ongoing shortage of housing supply coupled with sustained demand suggests property prices will continue to rise this year, albeit at a more measured pace compared to last year,” she added.
OnTheMarket president Jason Tebb commented: “The steadiness of house prices suggests that affordability is keeping a lid on values with buyers unable and unwilling to pay inflated amounts.”
He added: “Higher interest rates have dampened activity so last month’s rate cut from the Bank of England will be helpful in giving the market a boost. As we approach the end of the stamp duty concession this month, further cuts could give the market some much-needed impetus later in the year.”
