House prices rose for the sixth month in February despite concerns over a sluggish economy. According to Nationwide, Britain’s largest building society, the average house price increased by 0.4% during the month, up from 0.1% in January. This brought the average UK house price to £270,493.
Annual growth slowed slightly to 3.9%, compared with 4.1% in January. However, prices have steadily risen after a decline between mid-2023 and spring 2024. Nationwide’s index, one of the earliest indicators of market trends, suggests ongoing demand ahead of upcoming stamp duty changes in England and Northern Ireland.
From 1 April, the stamp duty threshold for first-time buyers will fall from £425,000 to £300,000, with the reduced rate limit dropping from £625,000 to £500,000. The general tax-free threshold will also halve from £250,000 to £125,000. These changes, reversing temporary cuts introduced under Liz Truss’s Government, may drive buyers to complete purchases before the deadline.
Despite economic uncertainty, housing market activity remains strong. Rightmove, the UK’s largest property website, reported a 6% increase in user engagement, with Britons spending 16.4 billion minutes browsing properties in 2024.
While annual price growth remains below the 10%-plus rates seen in 2022 during the pandemic-driven boom, the market appears resilient, with steady increases in house prices and sustained buyer interest.
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