Average house prices rose by 0.4 per cent in February, representing the fifth consecutive monthly rise, research from Halifax has revealed.
Halifax’s House Price Index reported the average house price had risen to £291,699 last month, around £1,000 more than the previous month and just £1,800 off the peak seen in June 2022.
This was an increase on both a quarterly and an annual basis, as the HPI detailed prices rose by 2.9 per cent when compared to the previous quarter and 1.7 per cent when compared to February 2023.
Halifax Mortgages director, Kim Kinnaird, said while the growth seen in recent months is “encouraging”, 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,” she explained.
“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.”
This sentiment was shared by Purplebricks CEO, Sam Mitchell, who said recent recovery “remains fragile”.
However, Ingenious managing director of real estate, Tom Brown, said: “The UK property sector continues to demonstrate its resilience and popularity in the face of high inflation and higher borrowing rates.
“Nationally, there remains a significant shortage of housing inventory across most locations and price points.
“Consequently, any slow-down in sales volumes from homeowners is likely to be offset by increased demand from renters and investors.”
Regions
The HPI also looked at house prices across the UK, reporting that Northern Ireland was the strongest performing region with house prices increasing by 5 per cent on an annual basis.
Properties in Northern Ireland now cost an average of £195,956, which is £9,359 more than the same time in February 2023.
Positive growth was also observed in the North West, where prices increased by 4.4 per cent on an annual basis to £232,128, the North East (4.2 per cent), and Wales (4.1 per cent).
However, properties in Eastern England were found to have fallen over the last month when compared to the rest of the UK’s regions, with homes selling for an average of £329,927, a drop of £2,794 since the same time in 2023.
tom.dunstan@ft.com
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