UK house prices have risen for the sixth month in a row, according to Nationwide, as the average price increased by 0.4% to £270,493 (€328,278) in February.
This marks a slight uptick from the 0.1% growth seen in January. Despite ongoing challenges with affordability, house prices have continued to rise over the past several months.
Nationwide’s Chief Economist, Robert Gardner, commented on the data, saying: “Housing market activity has remained resilient in recent months, despite ongoing affordability challenges. Indeed, the second half of 2024 saw a noticeable pick up in total housing transactions, which were up 14% compared with the same period in 2023.” However, he also noted that the total number of transactions in 2024 remained 6% below the levels seen in 2019, the last year unaffected by the pandemic.
Gardner further highlighted a “gradual increase in the number of buy-to-let purchases involving a mortgage,” aided by rising rental prices and easing mortgage rates for buy-to-let properties, improving financing options. Nevertheless, he cautioned that market activity remains subdued compared to historical norms.
Looking ahead, Gardner warned that the upcoming changes to stamp duty in April could cause “volatility in transactions in the near term, as buyers bring forward their purchases to avoid the additional tax.”
