UK house prices edged up by 0.5 per cent in February, with the average asking price reaching £367,994, marking a modest increase amid high market competition.
Wales bucked the national trend, recording a 2.7 per cent drop in average prices, whilst most other regions saw increases, according to the latest Rightmove HPI released today.
The muted price rise comes as new sellers adjust their expectations ahead of the upcoming stamp duty deadline.
The property market is showing signs of increased activity, with the number of available homes reaching a 10-year high, helping to moderate the traditional New Year price surge.
Properties in Wales dropped in value
PAScotland led the regional price increases with a substantial 3.5 per cent rise, taking average prices to £190,425. London showed strong performance with a 2.3`per cent increase, pushing average prices to £688,885.
Average house prices February 2025 (M-o-M % change)
- Scotland - £190,425 - up 3.5%
- Yorkshire and The Humber - £251,583 - up 2.4%
- London - £688,885 - up 2.3%
- South West - £377,030 - up 1.6%
- East Midlands - £285,392 - up 1.5%
- South East - £474,017 - 0.9%
- North West - £259,864 - up 0.3%
- West Midlands - £288,911 - up 0.3%
- East of England - £414,254 - up 0.1%
- North East - £190,124 - down 0.3%
- Wales - £255,316 - down 2.7%
The North East joined Wales in negative territory with a 0.3 per cent decrease to £190,124. The property market faces a potential conveyancing bottleneck, with over 550,000 homes sold but awaiting legal completion - 25 per cent higher than last year.
First-time buyers purchasing properties between £500,001 and £625,000 face particular pressure, risking an additional £11,250 in stamp duty if they miss the March 31 deadline.
The surge in available properties has created a more competitive market for sellers, contributing to more modest price expectations.
A rush to complete transactions before the deadline is expected, with some buyers scrambling to finalise purchases before the end of March.
LATEST DEVELOPMENTS
House prices have increased across the UK
GETTYMoving activity remains robust, with new sellers up 13 per cent compared to last year, while buyer demand increased by eight per cent. Sales agreed numbers have risen by 15 per cent, indicating sustained market momentum despite the upcoming changes.
January 2025 set a new record for Mortgage in Principle applications on Rightmove, showing a 49 per cent increase compared to January 2024.
While mortgage rates continue to be high, they are following a downward trend. Market sentiment continues to be influenced by global and economic news, with attention now focusing on upcoming inflation and earnings figures.
