House prices rise for fifth month in a row - Halifax

7th Mar 2024 07:43

(Sharecast News) - UK house prices rose for the fifth month in a row in February, according to figures released on Thursday by Halifax.

Prices were up 0.4% on the month following a 1.2% jump in January. This marked the smallest month-on-month rise in house prices since September.

On the year, house prices rose 1.7% in February, easing from a 2.3% gain a month earlier.

The average cost of a home now stands at £291,699, versus £290,608 in January.

Kim Kinnaird, director of Halifax Mortgages, said the figures continue to suggest a relatively stable start to 2024 and align with other promising signs of increased housing activity, such as mortgage approvals.

"In fact, the average price tag of a home is now only around £1,800 off the peak seen in June 2022," she said. "While it is encouraging that we've seen growth in recent months, what happens next remains uncertain.

"Although lower mortgage rates, alongside expectations of Bank of England interest rate cuts this year, should help buyer confidence in the short term, the downward trend on rates is showing signs of fading.

"Even with growing wages and inflation falling back, raising a deposit and affording a sizeable mortgage remains challenging, especially for those looking to join the property ladder, so it remains a possibility that there could be a slowdown in the housing market this year."

Andrew Wishart, senior property economist at Capital Economics, said: "The smallest month-on-month increase in house prices since September suggested that the boost to house prices from the decline in mortgage rates since last summer is over. With mortgage rates now edging up, house prices are likely to lose momentum in the near term."