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Halifax February 24 house price index

ended 07. March 2024

This morning, at 07:00, the Halifax published its February House Price Index, showing that average house prices rose by +0.4% in February, the fifth monthly rise in a row — and that property prices grew +1.7% on an annual basis (versus +2.3% last month). Newspage asked a selection of mortgage and property experts for their views, below.

10 responses from the Newspage community

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Chris BarryVerified
Director at Thomas Legal
Demand increased quite substantially in February as mortgage rates started to tick up again. This may feel like an unsual reaction but after speaking to hundreds of borrowers last month, a common theme seemed to be that people were holding off while rates were coming down, trying to time the bottom. As rates unexpectedly started to tick up, buyers who were poised jumped on the chance to secure a rate before they climbed further and then immediately set to work to secure a property before their new mortgage rate expires. Agents and brokers in my network have been sharing how unseasonally busy they were and this will translate into activity levels through March and beyond.
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Stephen PerkinsVerified
Managing Director at Yellow Brick Mortgages
There is an air of hesitation in the mortgage and property markets at present. The mortgage rate rises of the past month or so have created uncertainty among prospective buyers. Yes, there could be a slowdown this year but equally, a cut in the base rate could see things accelerate noticeably. A lot is riding on the next set of inflation data. With recent mortgage rate increases and house prices rising slightly, indecision could prove costly for some buyers.
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Darryl DhofferVerified
Founder at The Mortgage Geezer
The feel-good factor caused by the mortgage rate war saw 2024 begin on a positive note but then, as rates started reversing, demand started to level off a bit. The Budget may also have seen some buyers hold off in expectations of an incentive that didn't come. Predictions by the Office of Budget Responsibility that inflation could go below target in just a few months could see the fireworks restart if the Bank of England cuts the base rate. All eyes are now on the Monetary Policy Committee. That first rate cut, when it comes, will be the boost the market needs.
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Andrew MontlakeVerified
Managing Director at Coreco
The housing market continues to show a robustness that is flummoxing many house price crash activists. Much of this is down to the fact that despite a recession and a cost of living crisis, employment remains strong and demand for property still outweighs supply in many key areas of the country. With the fear of mortgage rates continuing up to 6% and beyond abating, and borrowers having had some time now to anchor themselves to the new world of mortgage rates, it looks like anything other than a small overall correction in house prices is overstating things. Much now depends on the next set of inflationary figures, but the public are crying out for a rate cut, rather than any more talk of potential rises. What happens to mortgage rates will ultimately define the housing market this year. What we are, however, seeing is a growing number of prospective buyers looking to do something this year rather than keep their lives on hold any longer.
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Craig FishVerified
Director at Lodestone Mortgages
The mortgage and property markets are unseasonably quiet at the moment, despite a positive start to 2024. The less than positive commentary coming from the Bank of England, alongside the extremely disappointing Spring Budget, have left would-be property buyers hesitant. Our only hope now for a ressurection is that the OBR's suggestion that inflation will drop below target in the next few months comes true and that the MPC make that first and eagerly awaited cut to the base rate. This should serve as the impetus that the property market so desparately needs right now.
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Riz MalikVerified
Independent Financial Adviser at R3 Wealth
After the Budget did nada for the property market, our attention turns back to the Bank of England. We need a base rate cut now, even 10 basis points, to start bringing back confidence, which this market desperately needs.
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Gary Bush0
Financial Adviser at MortgageShop.com
Activity levels were reasonable in February after a scintillating start to the year in January. Demand, however, can be a bit patchy at times. Property buyers are keen to secure the most competitive fixed rate, which they will then hopefully switch into a lower rate when it expires. I think most people now are not expecting a house price crash and so are getting on with it.
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Graham CoxVerified
Director at Bridging Hub
February was a slightly quieter month than January for us, but it's hard to know if that's due to mortgage rates increasing, or just the slowdown after the New Year rush. Either way, what would improve market sentiment is a base rate cut. We're in a little bit of a limbo phase, waiting for inflation to fall further and a General Election to be called. Without any sense of direction, my best guess is property values fall slightly this year, by perhaps 5%.
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Akhil Mair0
Director at Our Mortgage Broker
Demand has shown signs of dropping off as mortgage rates have risen, even though some individuals are begrudgingly accepting the current rate environment. Activity levels in February were notably quieter compared to January, reflecting concerns over rising mortgage interest rates and arrangement fees. Prospective buyers are primarily worried about the increasing mortgage interest rates, arrangement fees, and a decline in borrower confidence. Expectations for house prices this year are subdued as consumer sentiment is still shaky. A cut in the base rate, however, could reignite the market and change everything..
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Rhys SchofieldVerified
Brand Director at Peak Mortgages and Protection
We're seeing really brisk demand at the moment with a record number of mortgages submitted in February and our record day for new appointments booked this week. If this is any sort of bellwether, the signs are pointing to a very positive housing market over the coming months.