UK house prices continue to rise
According to recent data, the average price of a home in the UK stood at £281,000 as of February, although this figure fluctuates notably across different regions. Despite a modest 0.4% increase in February compared to the previous month, the latest UK House Price Index (UK HPI) reveals an annual decline of -2%.
This annual drop brings the average UK house price down to £281,000 (€328,000), with considerable divergence depending on the property's location. The North East saw the most substantial monthly rise in house prices, climbing by 3.2% in the year leading up to February 2024. Conversely, the North West experienced the highest annual growth, with prices ascending by 2.9% during the same period.
London persists as one of the most expensive markets, despite an annual price fall of -4.8%, boasting an average property value of £503,000 (€588,000). In contrast, Wales presents a significantly lower average property value, standing at £211,000 (€246,000), with a 1.2% annual price decline.
UK home prices averaged £281,000 in February, but exhibit notable regional discrepancies.
In February, the UK Property Transactions Statistics recorded 82,940 transactions involving houses or residential properties being bought or sold, each valued at £40,000 (€46,000) or more. This reflects a 6% decrease compared to February 2023.
While UK mortgage rates have been declining, boosting affordability and stimulating demand and prices, the Bank of England's decision to maintain the base interest rate at 5.25% in September led to a surge in UK house prices. Although most homeowners will experience only modest increases in monthly payments, data suggests that over a million homeowners could face hikes exceeding £300 (€350) by late 2026.
Meanwhile, the Financial Times reports a cooling trend in the rural housing market, with property hotspots transforming into "not-spots" as the work-from-home trend wanes. Consequently, Londoners who relocated during the pandemic are encountering challenges in selling their out-of-town properties, experiencing a sluggish market.
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