Average UK house price adds just £3,116 in February, says Halifax, as ‘general downward trend’ continues
- House price growth slowed in all regions of the UK in February
- In cash terms house prices are down around £8,500 on the August 2022 peak
- Prices of flats are now into negative territory over the past 12 months
Annual house price growth remained flat at 2.1 per cent for the third consecutive month, according to Halifax’s latest house price index.
The market also saw growth slow month-on-month with prices rising by just £3,116 in February, taking the average house price in the UK to £286,476.
This 1.1 per cent monthly growth is slightly up from the 0.2 per cent increase in prices seen in February.
Marginal rise: Typical UK property now costs £285,476, compared to £282,360 last month
However, in cash terms house prices are down around £8,500 (-2.9 per cent) on the August 2022 peak.
They remain almost £9,000 above the average prices seen at the start of 2022 and are still above pre-pandemic levels.
Kim Kinnaird, director, Halifax Mortgages, said: ‘Recent reductions in mortgage rates, improving consumer confidence, and a continuing resilience in the labour market are arguably helping to stabilise prices following the falls seen in November and December.
‘Still, with the cost of a home down on a quarterly basis, the underlying activity continues to indicate a general downward trend.
‘With average house prices remaining high housing affordability will continue to feel challenging for many buyers.’
Stunted growth: House price rises slowed in all nations and regions during February
Across the UK house price growth slowed in all regions in February, but saw the sharpest drop in in the North East. The region saw 3.6 per cent growth in January but has since dropped to 1.1 per cent.
By property type, prices of flats are now into negative territory over the past 12 months, falling by 0.3 per cent, while prices for terraced properties have broadly stagnated, rising just 0.3 per cent.
Prices of detached properties have increased by just by 1.5 per cent on the year, the smallest rise since the end of 2019.