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Halifax: Average UK house price holds steady in February"

ended 07. March 2025

House prices dipped by -0.1% in February (vs +0.6% in January), while annual growth remained at +2.9%, unchanged from January, according to the Halifax. The average property price is now £298,602, compared to £298,815 in January.

Amanda Bryden, Head of Mortgages, Halifax, said: “The typical UK house price remained stable in February, with a slight monthly dip of -0.1%. Annual growth also held steady at +2.9%, with the average house price edging down by just £213 to £298,602.

“February's figures highlight the delicate balance within the UK housing market. While there’s been talk of a last minute rush on new mortgages ahead of the changes to stamp duty, inevitably we’ve seen some of the demand that was brought forward start to fade as the April deadline ticks closer, given the time needed to complete a purchase.

“That may help to explain why growth in first-time buyer property prices eased in February, falling to +2.4%, in contrast to homemover price inflation which accelerated, reaching +3.7%.

“While house price growth has slowed overall, market activity remains strong and comparable to pre-pandemic levels, demonstrating a resilience amongst buyers that’s been evident in the face of higher borrowing costs.

“While those affordability challenges persist, the ongoing shortage of housing supply coupled with sustained demand suggests property prices will continue to rise this year, albeit at a more measured pace compared to last year.”

Newspage asked experts for their views, below.

7 responses from the Newspage community

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Andrew Montlake
CEO at Coreco
There is no shortage of economic headwinds facing the property market, and affordability is a constant challenge for many buyers, but it remains as hardy as ever. The sharper drop in annual house price growth in London is a slight curveball as demand in the capital remains strong. The lack of supply is one key support of ongoing price growth in recent months but so, too, is the stamp duty deadline, which has caused a rush of transactions. With the Halifax announcing further rate cuts yesterday, and other lenders also reducing, there are reasons to be optimistic despite the impact of the Budget and inflation once again edging up. The hope is that the rise in inflation is brief and that the base rate can be brought down sooner rather than later. Another rate cut or two this year would be a massive tonic for bricks and mortar.
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Stephen Perkins
Managing Director at Yellow Brick Mortgages
The property market is currently delivering solid rather than stellar growth but that's understandable given the challenges in the wider economy. Despite economic pressures and the end of the stamp duty discounts looming on the horizon, bricks and mortar remains resilient. House prices continue to show that those who put off buying could be left behind and find it harder to get on the ladder in future.
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Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
Buyers and sellers are done waiting. Despite economic uncertainty, the housing market refuses to stall. People are pressing ahead, keeping house prices stable and transactions flowing. The remortgage market is particularly strong, with homeowners eager to lock in deals and borrow extra while they can. The big unknown now is stamp duty. Changes are coming. From April, the revised, less favourable regime kicks in. Will this stifle activity or make little difference? The Halifax reports signs of the former but, in our experience, momentum is holding firm. Unless we see a real economic shock, like a surge in unemployment, I expect this resilience to continue through 2025. The market isn’t pausing, and neither are the people in it.
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Daniel Hobbs
CEO at New Leaf Distribution
There were no fireworks in the property market in February but conditions remain steady. That in itself is quite an achievement given the relentless barrage of weak economic data. The chronic lack of supply continues to support prices while demand, especially among first-time buyers, is strong. Many tenants are desperate to swap often sky-high rents for a property they own.
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Riz Malik
Independent Financial Adviser at R3 Wealth
It’s not just affordability that is the issue at present, it is confidence. With the implications of the Budget about to be felt by employers up and down the land, who wants to make major purchasing decisions especially increasing their debt burden? Rachel Reeves has got us into this mess and only Rachel or her successsor can get us out.
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Justin Moy
Managing Director at EHF Mortgages
This just shows that delicate the property market has become, with the inevitable cliff-edge from Stamp Duty increases starting to feed through to these figures. Mortgage pricing has improved over the last few weeks as a real encouragement to those buying and needing a mortgage, but with the overall cost of moving home increasing sharply, we will see a lull in market values and activity over the coming months.
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Iain Swatton
Director at Exemplar Financial Services
The latest Halifax HPI shows a market that is hanging in there, highlighting the resilience of homebuyers who remain determined to move despite economic and global uncertainty. Whether this momentum continues throughout the year remains to be seen, although measured price growth in 2025 seems to be a fair assessment.