Average UK house prices increased by 5.4%, to £268,000, in the 12 months to February, up from 4.8% in the 12 months to January, the latest UK House Price Index from the Land Registry shows.
Average house prices increased by 5.3% in England, 4.1% in Wales, and 5.7% in Scotland. The average house price for Northern Ireland was £183,000 in Q4, up 9.0% from Q4 2023.
The North West was the English region with the highest house price inflation in the 12 months to February, at 8.0%, up from 6.9% in the 12 months to January.
Annual house price inflation was lowest in London, at 1.7% in the 12 months to February, down from 2.0% in the year to January.
CEO of Octane Capital, Jonathan Samuels, commented: “Since the Bank of England first decided to cut interest rates in August of last year, we’ve seen mortgage rates trending downwards and there’s no doubt that these improvements to mortgage affordability are helping to positively stimulate the UK property market.
The mortgage landscape is only expected to improve as the year progresses with further cuts to interest rates on the cards and these cuts could start to come thick and fast should Trump’s insistence on global economic instability start to drive up inflation.”
Richard Harrison, head of mortgages at Atom Bank, said: “House price inflation has been buoyed in recent months by buyers desperately scrambling to get completions over the line before the stamp duty deadline. Figures from Propertymark show that the average number of viewings per available property rose in February to its highest level since last summer, as would-be purchasers looked to get the ball rolling on a transaction. That competition has put vendors in a good position to hike their asking price, as reflected in the ONS data.
“While the stamp duty deadline has now passed, I’m not sure we should expect to see much of an impact on house prices, particularly given the prospect of lower mortgage rates to come. Ongoing market turmoil has had an impact on base rate expectations, with some suggestions there could be as many as four further cuts this year, while today’s lower than expected inflation data strengthens the case for cuts to be made soon. We are already seeing lenders cutting rates, so even without the allure of a lower stamp duty bill, would-be buyers may feel more confident in pushing ahead with a purchase.
“Given the speed at which house prices have accelerated, a squeeze on household budgets and the lack of a replacement for schemes like Help to Buy, it’s more important than ever that buyers can access funding at high LTVs. The lack of an enormous deposit should not be an insurmountable barrier for those more than able to service a mortgage.”
Jonathan Handford, managing director at national estate agent group Fine & Country, added: “House prices edged up in February, likely reflecting a final flurry of demand as buyers raced to beat the stamp duty threshold changes coming into effect in April.
“With the first-time buyer relief threshold set to fall from £425,000 to £300,000, February became a key deadline for those trying to secure a purchase before facing steeper costs — pushing a wave of sales over the line and giving prices a temporary lift.
“March brought more economic signals that could shape the market ahead. The Bank of England held the base rate steady at 4.5%, while reports today reveal inflation dipped unexpectedly again to 2.6% — closer to the Government’s 2% target — offering some relief amid ongoing cost-of-living pressures.
“Looking ahead, global headwinds such as the latest US tariffs under Trump’s proposed trade plans could add strain to the broader economy. However, this could prompt the Bank of England to consider further rate cuts to keep growth on track.
“In the near term, while the February price bump may prove short-lived, there are signs of cautious optimism. A softer inflation outlook and potential rate reductions could support borrowing conditions — but affordability remains a hurdle, especially for those now facing a tighter stamp duty regime.”
