House prices have risen for the fifth month in a row, according to separate data from Halfiax published on Thursday, with properties rising 0.4pc price increase in February – adding around £1,000 to the value of the average home. Prices have increased 1.7pc over the past 12 months taking the average UK house price to £291,699.
Kim Kinnaird, director of Halifax Mortgages, said: “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.”
House prices flatlined last year as high mortgage rates hammered household finances, leading to a loss of market confidence and drag on demand.
As the Bank Rate rose to reach its current level of 5.25pc in the third quarter of 2023, housing transactions fell to 256,000, down more than 40pc from the post-pandemic peak.
