Within the UK Home Worth Index abstract for February 2025, the common property value within the UK was £268,000, with a 5.4% annual enhance and no change from the earlier month. This knowledge is predicated on accomplished gross sales and displays the official authorities statistics.
Breaking it down, home costs in England elevated to £292,000 (5.3%) in comparison with February 2024, whereas these in Wales elevated by 4.1% to £207,000 and in Scotland costs elevated by 5.7% to £186,000.
Jason Tebb, President of OnTheMarket, feedback on February UK HPI:
Though historic, this knowledge reveals home costs continued to rise on an annual foundation in February, with the common property value £13,000 larger than a 12 months in the past.
Two rate of interest reductions within the second half of final 12 months and one up to now this 12 months have had a constructive knock-on impact on confidence, which the housing market depends so closely on. Nonetheless, whereas the speed of inflation fell by greater than anticipated final month from 2.8 per cent to 2.6 per cent, it’s anticipated to rise once more in April as tax modifications and value hikes come into impact. This may occasionally impression the Financial institution of England’s plans with regard to the tempo of additional charge reductions because it retains an in depth eye on inflationary pressures.
Affordability stays a problem however with quite a lot of lenders decreasing their mortgage pricing over the previous few weeks, this will likely proceed to ease if Swap charges decline and different lenders observe go well with. Cheaper mortgage charges will surely assist increase exercise and transactions, that are of profit not simply to the housing market however wider economic system.
