UK House Prices Continue to Rise in February in Continued Property Market Rebound

UK House Prices on the Rise in February, Property Market Continues to Rebound

In a positive sign for the UK property market, house prices rose in February, with the average cost of a home now standing at £291,699, an increase of around £1,000 from the previous month. Data from Halifax shows that property prices grew by 1.7 per cent on an annual basis, although this is slightly lower than the 2.3 per cent growth seen the month before.

Kim Kinnaird, director of Halifax Mortgages, commented on the figures, stating that they indicate a “relatively stable start to 2024” and align with other positive signs of increased housing activity, such as rising mortgage approvals. She noted that the average price of a home is now only £1,800 off the peak seen in June 2022.

However, Kinnaird also warned that the property market remains uncertain, despite lower mortgage rates and expected Bank of England interest rate cuts. She emphasized that raising a deposit and affording a mortgage can still be challenging, especially for first-time buyers, and there is a possibility of a slowdown in the housing market this year.

London property prices saw an annual increase for the first time since January 2023, while Northern Ireland experienced the fastest growth, with prices up 5 per cent. In contrast, property prices in the east of England fell by 0.8 per cent, with the average home now selling for £329,927.

Industry experts such as Marc von Grundherr of Benham and Reeves and Nathan Emerson of Propertymark expressed optimism about the property market’s trajectory. Von Grundherr described the latest data as “further proof the property market is back on track,” while Emerson highlighted the increase in new properties coming onto the market and market appraisals being undertaken.

Overall, the latest figures indicate a positive outlook for the UK property market, with many homeowners and potential buyers likely to remain active in the coming months.