House prices in the UK showed signs of stabilizing in February, with regional variations in price growth, according to Rightmove’s February House Price Index. The average asking price for properties was £367,994 (€442,255.2), marking a 0.5% rise (or £1,805/€2,169.3), a slowdown from January’s 1.7% growth.
This slower pace is attributed to a mix of falling price expectations from sellers, rising competition in the housing market, and the looming end of temporary stamp duty increases.
On an annual basis, the national average asking price rose 1.4% in February, down from 1.8% in January. Regional data showed that Scotland saw a 3.5% increase in asking prices month-on-month, while the North West rose by 0.3%. In contrast, house prices in the North East fell by 0.3%, and Wales saw a 2.7% drop. London posted a notable increase of 2.3%, while the South West and South East grew by 1.6% and 0.9%, respectively.
The upcoming return of pre-pandemic stamp duty thresholds is a major factor affecting the market. From April 1, 2025, the temporary increase in the Stamp Duty Land Tax (SDLT) threshold will expire, reducing the exemption limit for first-time buyers from £425,000 (€511,030.6) to £300,000 (€360,727.5). As a result, first-time buyers will no longer be exempt from stamp duty on properties valued above £300,000.
Despite these shifts, higher-end property prices showed some resilience, with asking prices for those further up the ladder rising by 0.6% month-on-month and 2.1% annually. Second-time buyers also saw a 0.5% increase in asking prices, up 1.5% from the previous year.
However, first-time buyers faced a slight dip in national asking prices, with a 0.1% monthly drop, although they still saw a 0.9% rise year-on-year.
The volume of properties available for sale reached a 10-year high, helping to temper price hikes. This influx of supply, alongside longer transaction times (currently averaging five months), has led to reduced consumer interest, especially among those who may not be able to finalize purchases before the stamp duty changes take effect.
Despite the slowdown, moving activity has remained strong, with a 13% increase in new sellers and an 8% rise in buyer demand compared to last year. Ongoing economic and geopolitical uncertainties continue to weigh on the housing market’s outlook, with inflation figures closely monitored by both buyers and sellers.
