The average UK house price held steady throughout February, with annual growth remaining unchanged from January.
According to the latest House Price Index from Halifax, the average UK house price has remained stable throughout February 2025.
House prices dipped by just 0.1% last month, compared to 0.6% in January, meaning the average property price in the UK is now £298,602, compared to £298,815 at the start of the year – a change of just £213. Annual growth remains at 2.9% – unchanged from January.
Stamp duty deadline causes dip
According to Amanda Bryden, Head of Mortgages at Halifax, the slight dip at the end of February is likely due to the changes in stamp duty, which come into effect from 1 April 2025.
‘February’s figures highlight the delicate balance within the UK housing market,’ she says. ‘While there’s been talk of a last-minute rush on new mortgages ahead of the changes to stamp duty, inevitably we’ve seen some of the demand that was brought forward start to fade as the April deadline ticks closer, given the time needed to complete a purchase. That may help to explain why growth in first-time buyer property prices eased in February, falling to 2.4%, in contrast to home-mover price inflation, which accelerated, reaching 3.7%.’
House prices by region
While most of the UK saw a slowdown in house price inflation in February, Scotland bucked the trend, with an annual growth increase to 3.8%. Northern Ireland also continued to have the strongest annual property annual price growth in the UK, largely unchanged at 5.9% in February.
House prices in Wales were also up 2.8% compared to the previous year, while in England, Yorkshire and Humberside recorded the strongest annual property price growth for the first time since July 2021, up 4.1% compared to the previous year.
London, on the other hand, saw annual house price growth ease from 2.6% in January to 1.6% in February. The capital still has by far the most expensive average property price in the UK, though, at £545,183.
Market activity remains strong
While growth in first-time buyer property prices has eased and house price growth has slowed overall, Bryden assures that market activity remains strong and comparable to pre-pandemic levels.
‘This demonstrates a resilience amongst buyers that’s been evident in the face of higher borrowing costs,’ she says. ‘While those affordability challenges persist, the ongoing shortage of housing supply, coupled with sustained demand, suggests property prices will continue to rise this year, albeit at a more measured pace compared to last year.’