Average UK house price adds just £3,116 in February amid ‘general downward trend’

UK median home price adds just £3,116 in February, Halifax says, as ‘general downtrend’ continues

  • House price growth slowed in all regions of the UK in February
  • In cash, house prices are down around £8,500 from their August 2022 peak
  • Apartment prices have now been in negative territory for the past 12 months

According to Halifax’s latest home price index, annual home price growth remained flat at 2.1 percent for the third month in a row.

The market also saw slow month-on-month growth with prices rising by just £3,116 in February, taking the average UK house price to £286,476.

This monthly growth of 1.1 percent is slightly higher than the price increase of 0.2 percent in February.

Marginal increase: Typical UK property now costs £285,476, compared to £282,360 last month

In cash, however, house prices are down by around £8,500 (-2.9 per cent) from their August 2022 peak.

They remain nearly £9,000 above average prices at the start of 2022 and are still above pre-pandemic levels.

Kim Kinnaird, director of Halifax Mortgages, said: “Recent mortgage rate cuts, improving consumer confidence and continued resilience in the labor market are likely to help stabilize prices after the declines in November and December.

Still, with the cost of a home falling on a quarterly basis, underlying activity continues to show an overall downward trend.

‘With a persistently high average house price, the affordability of homes will remain a challenge for many buyers.’

Slower growth: House price growth slowed in all countries and regions in February

Across the UK, house price growth slowed across all regions in February, but the sharpest fall was in the North East. The region grew by 3.6 percent in January, but has since fallen to 1.1 percent.

By property type, apartment prices are now in negative territory over the past 12 months, down 0.3 percent, while prices for townhouses have largely stagnated, rising only 0.3 percent.

Prices of detached houses have increased by only 1.5 percent on an annual basis, the smallest increase since the end of 2019.

What to do if you need a mortgage

Borrowers who need to find a mortgage because their current fixed-rate contract is about to expire, or because they have agreed on a home purchase, should explore their options as soon as possible.

This is Money’s best mortgage interest calculator powered by L&C that can show you deals that match your mortgage and property value

What if I have to borrow again?

Borrowers should compare rates and speak with a mortgage broker and be prepared to trade to secure a rate.

Anyone with a fixed-rate deal expiring in the next six to nine months should research how much it would cost them to re-mortgage now — and consider getting a new deal.

Most mortgage agreements allow fees to be added to the loan and are not charged until it is closed. By doing this, borrowers can secure a rate without paying expensive arrangement fees.

What if I buy a house?

Those with an agreed home purchase should also aim to secure rates as soon as possible so they know exactly what their monthly payments will be.

Homebuyers should be careful not to overextend themselves and should be prepared for the possibility that house prices could fall from their current highs, due to higher mortgage rates limiting people’s borrowing capacity.

Compare mortgage payments

The best way to compare mortgage rates and find the right deal for you is to talk to a good real estate agent.

You can use our best mortgage interest calculator to display deals that match your home value, mortgage size, term and fixed interest needs.

However, bear in mind that rates can change quickly, and so the advice is that if you need a mortgage you should compare rates and then speak to an estate agent as soon as possible so they can help you find the right one mortgage for you.

> Check out the best fixed rate mortgages you can apply for

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