Newly released figures from Halifax have shown that house price recovery is continuing across the UK with average prices up by 0.4% in February - marking the fifth monthly rise in a row.
Property prices grew +1.7% on an annual basis (vs +2.3% last month) and see the price of a typical UK home now standing at £291,699, around £1,000 more than last month.
National and regional breakdown
Northern Ireland is the strongest performing nation or region in the UK – house prices here increased by +5% 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.
The North West saw positive growth of +4.4% on an annual basis to £232,128. The North East (+4.2%) and Wales (+4.1%) also recorded strong increases over the last year.
London continues to have the highest average house price across all of the regions, at £536,996. Prices in the capital have increased +1.5% which is the first positive annual growth seen since January 2023.
Properties in Eastern England fell the most last month, when compared to the rest of the UK’s nations and regions, with homes selling for an average of £329,927 (-0.8%), a drop of £2,794 since the same time in 2023.
Kim Kinnaird, Director, Halifax Mortgages, said: “UK house prices rose for the fifth consecutive month in February, up by +0.4% or £1,091 in cash terms, with the average house price now £291,699.
“On an annual basis, house prices were +1.7% higher than a year ago, slowing from +2.3% in January. However, these 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. 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.”
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