Home Property Average UK house price increased by 0.4% in February

Average UK house price increased by 0.4% in February

7th Mar 24 11:40 am

According to a Halifax index the average UK house price increased by 0.4% in February  and property values grew by 1.7% compared to 2.3% the month before.

In February the average UK house price was £291,699 which is £1,000 more than the month before.

Kim Kinnaird, director, Halifax Mortgages, said the figures “continue to suggest a relatively stable start to 2024 and align with other promising signs of increased housing activity, such as mortgage approvals.

“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.

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“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.

“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.”

Amy Reynolds, head of sales at London-based estate agent Antony Roberts, said: “The market continues to pick up momentum after a relatively quiet 2023, with a flow of committed buyers and a strong pipeline of serious applicants, which bodes well for a busy spring market.”

She added: “While the capital gains tax reduction might encourage some landlords to sell, it could also exacerbate the shortage of rental properties we are seeing, leaving tenants in a difficult position, especially those already facing high rents.”

Nicky Stevenson, managing director at estate agent group Fine & Country, said: “It will be interesting to see whether the Chancellor’s capital gains tax cut announcement in the Budget encourages teetering landlords to sell their properties.

“A rush of new listings would inject more energy into the housing market and may reignite demand from first-time buyers who have been struggling to afford a home in this high interest rate environment.”

Tom Bill, head of UK residential research at estate agent Knight Frank, said: “Financial markets are expecting fewer rate cuts than the start of this year due to stubborn wage growth.

“This mixed picture means transactions should increase versus last year and we expect prices to rise by 3%, but the last two months of weaker inflation signals have been a useful reminder that asking prices need to remain realistic.

“The regional breakdown shows how affordability remains a big constraint on the market, with better-value areas seeing stronger price growth over the last year.”

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