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UK house prices rose faster than expected last month, new data showed on Tuesday, but underlying activity points to a general downward trajectory.
UK house prices rose 1.1% in February from the month before, after a 0.2% rise in January from December. House prices fell 1.3% month-on-month in December.
FXStreet-cited market consensus expected a more modest rise of 0.4%.
They rose 2.1% annually in February, with the rate of growth unchanged from the previous two months.
‘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,’ said Kim Kinnaird, director at Halifax Mortgages.
The typical UK property cost £285,476 in February, up from £282,360 in January.
‘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,’ Kinnaird noted.
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