The average house price in the UK for February was £291,699, which is approximately £1,000 higher than the previous month
According to an index, the average price of houses in the UK saw a 0.4% increase in February, marking the fifth consecutive monthly rise.
Halifax reported that property prices grew by 1.7% on a yearly basis, compared to 2.3% the previous month. The average house price in the UK for February was £291,699, which is approximately £1,000 higher than the previous month.
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, Kinnaird said. While it is encouraging that we have seen growth in recent months, what happens next remains uncertain.
Although lower mortgage rates, alongside expectations of BoE interest rate cuts this year, should help buyer confidence in the short term, the downward trend on rates is showing signs of fading, she added.
Even with growing wages and inflation dropping, 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, she said.
In the recent Budget announcement, Chancellor Jeremy Hunt introduced several property tax measures, including a reduction in the higher rate of CGT for residential properties from 28% to 24% starting from April 2024.
The Budget documents stated that these measures aim to encourage landlords and second homeowners to sell their properties, thereby increasing availability for a wider range of buyers, including those aspiring to enter the housing market.
Amy Reynolds, head of sales at London-based estate agent Antony Roberts, said: The market continues to pick up momentum after a comparatively quiet 2023, with a flow of committed buyers and a strong pipeline of serious applicants, which bodes well for a busy spring market.
She said: While the CGT 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.
