House prices rose by £16,000 during the year to February, according to the ONS, but growth slowed compared to a month before
- The median house price in the UK was £288,000 in February 2023
- Growth in the year to February slowed from a month earlier when it stood at 6.5%
House prices in the UK rose 5.5 per cent in the year to February 2023, adding £16,000 to the average property value.
However, the rate of growth is slower than a month earlier, when prices rose 6.5 percent in the year to January, according to the Office for National Statistics.
Experts say the reduced growth reflects the “dismal midwinter” for real estate when there were three consecutive month-on-month price declines.
This was largely due to the effects of Liz Truss’s mini-budget as mortgage costs skyrocketed.
The average house price in the UK was £288,000 in February 2023, an increase of £16,000 in a year
“Fortunately, things have thawed out quite a bit since then,” said Jonathan Hopper, CEO of buying broker Garrington Property Finders.
“The frayed nerves are starting to sink in and pragmatic buyers are looking much more at the long-term in their plans, rather than focusing on how prices might change over the next two months.
“Supply is slowly improving, even if it remains low by historical standards – and this keeps a floor under falling prices, especially in the big cities, which are clearly busier than rural areas.”
The number of homes for sale has reached its highest level in 27 months, according to new figures.
Many had previously put their relocation plans on hold after mortgage rates rose to their highest level in 14 years and home prices began to fall late last year.
The average house price in the UK was £288,000 in February 2023, £5,000 below its recent peak in November 2022, the ONS figures show.
Despite the relative resilience of the housing market, inflation remains high at 10.1%, raising fears of another Bank of England rate hike in May that could further constrain buyers’ budgets.
House price growth slowed in February compared to the previous month, despite overall resilience
Jeremy Leaf, a North London estate agent and former Rics residential chairman, says: ‘Despite another small month-on-month price decline, the housing market is proving resilient.
“These are the most comprehensive of all housing surveys, but the numbers are a bit dated and inevitably report on activity from a few months earlier, when the market was in a slump.
Since then, confidence has slowly improved in response to more choice and stabilizing mortgages, if not base rates.
“However, concerns about inflation remain and buyers want to see the value, so they flexed their muscles before making any decisions.”