Figures from the Office for National Statistics (ONS) show that average UK house prices have risen 5.5 per cent since this time last year.
The annual percentage change for average UK house prices was 5.5 per cent in the 12 months to February 2023.
The average UK house price was £288,000 in February 2023, which is £16,000 higher than 12 months ago.
Average house prices increased over the 12 months to £308,000 (6 per cent) in England, to £215,000 in Wales (6.4 per cent), to £180,000 in Scotland (1 per cent), and to £175,000 in Northern Ireland (10.2 per cent).
However, the average UK house price decreased by 1 per cent between January 2023 and February 2023. This caused the UK annual inflation rate to slow this month.
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In England, the February data shows that, on average, house prices have fallen 0.8 per cent since January 2023. The annual price rise of 6 per cent takes the average property value to £308,365.
The West Midlands experienced the greatest annual price rise, up by 8.6 per cent, while London saw the lowest annual price growth, with an increase of 2.9 per cent. Prices in the capital have fallen 1.1 per cent since January 2023.
Wales shows, on average, house prices have fallen by 0.6 per cent since January 2023. An annual price rise of 6.4 per cent takes the average property value to £215,343.
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‘The housing market is proving to be resilient’
Jeremy Leaf, north London estate agent, said: “Despite another small fall in prices month-on-month, the housing market is proving to be resilient. These are the most comprehensive of all housing surveys but the figures are a little dated, inevitably reporting on activity from a few months earlier when the market was in the doldrums.
“Since then, confidence has slowly improved in response to more choice and stabilising mortgage, if not base, rates. However, worries about inflation persist and buyers want to see value so are flexing their muscles before making decisions.”
Nick Leeming, chairman of Jackson-Stops, noted that a stability may be returning to the market.
He said: “The property market has turned into a marathon from a sprint. While there is still a long way to go, the market has cleared the first jump relatively unscathed. Today’s figures show a soft repricing, which marks a more stable period for house price values following the supersonic heights reached this time last year.
“Even in the last two months, the economic picture is becoming much more stable. Mortgage deals are also returning to the market after a short hiatus in the immediate aftermath of Trussenomics.
“Market conditions and an under reliance on outside funding has left cash buyers in a fortunate position, able to push ahead with quick completions and benefit from the increasing number of properties entering the market.”
Tomer Aboody, director of property lender MT Finance, was alos optimistic that the market could get ‘back on track’ in the coming months.
He said: “Fewer properties for sale tends to result in higher property prices, which seems to have been the case over the past year or so, with demand in the regions and for houses particularly strong.
“With mortgage rates fluctuating, particularly towards the end of last year, many buyers stalled, which meant a reduction in the number of transactions.
“Hopefully, as inflation falls and rates continue to stabilise, we will see more sales proceeding as buyers return and get their purchases back on track.”
By Emma Lunn
Source: Mortgage Solutions