House prices in the United Kingdom increased by 2.1% in February compared to the same month in 2022, according to Halifax's monthly House Price Index report published on Tuesday. The annual price growth remained the same for the third straight month.
On a monthly basis, housing prices in February climbed 1.1%, reaching an average price of £285,476. Compared to the previous trimester, house prices in the UK dropped by 2.5% in the quarter to February.
"Recent reductions in mortgage rates, improving consumer confidence, and a continuing resilience in the labor market are arguably helping to stabilize 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," Kim Kinnaird, director at Halifax Mortgages, said. She added house prices are still above the pre-pandemic levels and thus "affordability will continue to feel challenging for many buyers."
