House Prices on the Rise, Approaching Pre-2022 Peak

In February, UK house prices continued their upward trend, marking the fifth consecutive month of growth. According to data from Halifax, prices rose by 0.4 percent or £1,091 in cash terms, with the average house price now standing at £291,699. While this increase reflects a slightly slower annual growth rate of 1.7 percent compared to January's 2.3 percent, it suggests a relatively stable beginning to 2024. These positive figures align with other indicators of increased housing activity, including rising mortgage approvals, indicating a potential recovery in the market.

Despite nearing the peak levels seen in June 2022, uncertainties persist regarding the future trajectory of the housing market. Halifax Mortgages director, Kim Kinnaird, highlights the challenges ahead, noting that while lower mortgage rates and expectations of Bank of England interest rate cuts may bolster buyer confidence in the short term, the downward trend on rates is showing signs of fading. Affordability remains a concern, particularly for prospective first-time buyers, as raising a deposit and affording a sizeable mortgage continue to pose challenges, potentially leading to a slowdown in the market.

Regionally, Northern Ireland emerges as the strongest performer, with house prices experiencing a notable 5.0 percent increase annually. Meanwhile, other regions like the North West, North East, and Wales also recorded robust growth rates ranging from 4.1 to 4.4 percent over the past year. However, London maintains the highest average house price across all regions, standing at £536,996, with a 1.5 percent increase marking the first positive annual growth since January 2023. Conversely, properties in Eastern England declined last month, with homes selling for an average of £329,927, down by 0.8 percent compared to the same period in 2023.

Source: Landlord Today