House prices in February 2025 were 2.9% higher than the same month a year earlier.
The latest Halifax House Price Index shows that house prices remained steady in February, with only a minor dip in the average property price. Market activity remains strong, despite affordability challenges and upcoming changes to stamp duty.
Key Highlights
- Average house price: £298,602
- Monthly change: -0.1%
- Quarterly change: +1.0%
- Annual change: +2.9%
- Strongest growth: Northern Ireland (+5.9%)
- Scotland’s house prices rising fastest in 13 months: +3.8%
House Prices Holding Steady
February’s figures show that house prices have remained stable, with a small drop of -0.1% compared to January’s 0.6% rise. While this marks a slight decrease, annual house price growth continues at 2.9%, the same as the previous month.
The average house price now sits at £298,602, which is just £213 less than last month. This highlights a balanced market, where prices are not seeing significant shifts despite ongoing affordability pressures.
Why Have House Prices Stabilised?
Several factors have influenced the steady house prices in February:
- Stamp duty deadline: Many buyers rushed to secure mortgages ahead of the upcoming changes in April. Now, some of that demand has eased as buyers consider the time needed to complete purchases before the deadline.
- Market resilience: Despite high borrowing costs, market activity remains strong, similar to pre-pandemic levels.
- Supply and demand: The ongoing shortage of available properties continues to support house prices, though growth is now at a more measured pace.
First-Time Buyers vs Home Movers
The figures show a contrast between first-time buyers and home movers:
- First-time buyer price growth slowed to +2.4%, possibly due to affordability challenges and mortgage costs.
- Home mover price growth increased to +3.7%, showing continued demand in this segment of the market.
This trend suggests that those already on the property ladder are more active, while first-time buyers may be facing greater affordability concerns.
House Prices by Region
Different parts of the country saw varying levels of house price changes in February:
Strongest House Price Growth
- Northern Ireland: Remains the leader with +5.9% annual growth, with average property prices now at £205,784.
- Scotland: Prices grew by +3.8%, marking the fastest increase in 13 months, with average property prices at £213,014.
- Yorkshire and Humberside: Annual growth reached +4.1%, the highest since July 2021, with properties averaging £216,130.
Slower Growth in London
London saw a notable slowdown in price growth, with annual house price growth easing from +2.6% in January to +1.6% in February. The capital still holds the highest average property price at £545,183.
Other Regions
- Wales: House prices grew by +2.8%, with the average property now valued at £226,811.
- England overall: Different regions saw varied changes, but growth was generally slower than previous months.
What This Means for Buyers and Sellers
- If you’re a first-time buyer, the market is still competitive, but price growth slowing may provide more opportunities to negotiate.
- If you’re looking to move, home mover price growth is strong, meaning you may get a good price for your property while still benefiting from stable prices on your next home.
- If you’re considering selling, house prices remain resilient, and demand is still high in many areas.
Market Outlook for 2025
Looking ahead, the housing market is expected to remain stable, with gradual price increases in the coming months. While borrowing costs remain high, a lack of housing supply means that prices are unlikely to fall significantly.
Need Mortgage Advice?
If you’re thinking about buying or moving home, now is a great time to explore your mortgage options. With market conditions changing, getting the right mortgage advice is essential to ensure you secure the best deal.
Contact us today to discuss your mortgage needs and find out how we can help you navigate the market.
Read the full report for more insights on the current state of the UK housing market: Halifax Price Index February 2025
Source: Halifax
