National house prices up - but London sees drop

The data also revealed that the typical UK property now costs £285,476, compared to £282,360 last month, with the monthly change of 1.1% from 0.2% in January and -1.3% December.

This data defies forecasts and expectations continually predicting that the average price in the UK is due to fall month-on-month.

Despite this, the rate of annual growth slowed in all nations and regions in February.

Annual growth reduced most significantly in the North East, at 1.1% in February vs a rise of 3.6% in January, with homes now costing an average £163,953.

Average house prices in London are now £526,842, a 0.9% fall from January’s £530,416. London may be affected by its large proportion of flats – prices for which have broadly stagnated.

Rental demand in London in February was 44% higher than the five-year average, while supply was down by 41%, according to Zoopla.

Despite this slowdown, homes in London still cost over £240,000 more than the UK national average.

Annual growth fell the least in Scotland, with Scottish house prices now at an average £198,779 (a growth rate of 2.2%, vs 2.3% in January.)

Similarly in Wales, annual growth in February was 1.2% (vs 1.9% in January), with homes costing £210,917, on average.

Those purchasing a home in Northern Ireland will now pay £185,009, on average, an annual growth rate of 5.7% (vs 7.0% in January.)

Kim Kinnaird, director, Halifax Mortgages, said: “The average house price in February was £285,476, 2.1% up on this time last year, and has been stable over the last three months. When comparing to January, there was a 1.1% increase in house prices through the month of February, although overall prices are flat compared to three months ago.

“Recent reductions in mortgage rates, improving consumer confidence, and a continuing resilience in the labour market are arguably helping to stabilise prices following the falls seen in November and December. Still, with the cost of a home down on a quarterly basis, the underlying activity continues to indicate a general downward trend.

“In cash terms, house prices are down around £8,500 (-2.9%) on the August 2022 peak but remain almost £9,000 above the average prices seen at the start of 2022 and are still above pre-pandemic levels, meaning most sellers will retain price gains made during the pandemic. With average house prices remaining high housing affordability will continue to feel challenging for many buyers.”