UK house prices remained largely stable in February, recording a marginal decline of 0.1% following a 0.6% rise in January, according to the latest data from Halifax.
The average property price now stands at £298,602, down slightly from £298,815 in the previous month. Annual house price growth remained unchanged at 2.9%.
Scotland saw the fastest house price growth in 13 months, with a rise of 3.8%, reflecting strong demand in the region.
Amanda Bryden, head of mortgages at Halifax, said: “The typical UK house price remained stable in February, with a slight monthly dip of -0.1%. Annual growth also held steady at +2.9%, with the average house price edging down by just £213 to £298,602.
“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.
“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.
“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.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, added: “Average house prices are holding steady as borrowing costs, which albeit have softened recently, remain higher than many buyers were paying not that long ago.
“With the Bank of England cutting interest rates last month, and the expectation of further reductions to come, this should give buyers renewed confidence to make their move.
“Swap rates have been declining slowly, enabling several lenders including Nationwide and Barclays to reintroduce those psychologically-important sub-4 per cent mortgages. However, the market remains jittery and with Swaps jumping again over the past couple of days, wiping out much of the recent declines, the cheapest deals may not hang around for long. Borrowers should seek advice and move quickly to secure a rate they like the look of.”
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, said: “On the ground, we have noticed the recent drop in mortgage rates has boosted buyer confidence but affordability continues to be the dominant factor.
“As the sun continues to shine, more stock is coming to market as family homes with gardens in particular start to look their best. Well-priced and well-presented homes are selling relatively quickly; while buyers may be pausing to assess financial implications before taking the plunge, high-demand areas are retaining interest.”
