UK house prices hold steady in February, says Halifax

The average price of a house in the UK held relatively steady last month, while annual growth remained unchanged from January.

According to Halifax’s latest house price index, values dipped by 0.1% against the previous month in February, having risen 0.6% in January.

Annual growth stood at 2.9% in the month, which was the same rate as the month prior.

The growth rates meant that the average house price in February stood at £298,602.

“February’s figures highlight the delicate balance within the UK housing market,” said Amanda Bryden, head of mortgages at the bank.

“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.”

She said this could explain why growth in first-time buyer property prices eased in the month, falling to a rate of 2.4%, while homemover price inflation accelerated to 3.7%.

“While house price growth has slowed overall, market activity remains strong and comparable to prepandemic levels, demonstrating a resilience amongst buyers that’s been evident in the face of higher borrowing costs,” she said. 

“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.”

Regionally, most areas saw a slowdown in the month, although Scotland was the most notable exception.

The annual growth rate in the country hit its fastest pace in 13 months, rising to 3.8%.