House prices are holding up despite costs crisis
Average house values increased by 1.1% last month but the costs crisis is still having a negative effect on the property market, according to new figures.
The monthly Halifax index shows annual house price growth stood at 2.1% in Februaryfor the third month in a row and last month’ s value increases were upon the 0.2% growth in January–bringing the average UK house price to £285,476.
In the North East, the average house price was £163,953 – 1.1% more than a year ago.
Mortgage rates jumped last autumn following September's mini-budget but, despite the mortgage market showing signs of settling, Bank of England base rate rises have also been putting upward pressure on borrowing costs.
Kim Kinnaird, director, Halifax Mortgages, said: "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.”
He added: "In cash terms, house prices are down around £8,500 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.
"With average house prices remaining high, housing affordability will continue to feel challenging for many buyers."
James Forrester, managing director of estate agent Barrows & Forrester, said: "The housing market continues to stand firm in 2023 and the general economic outlook is far more positive than anticipated ."