In the UK House Price Index summary for February 2025, the average property price in the UK was £268,000, with a 5.4% annual increase and no change from the previous month. This data is based on completed sales and reflects the official government statistics.
Breaking it down, house prices in England increased to £292,000 (5.3%) compared to February 2024, while those in Wales increased by 4.1% to £207,000 and in Scotland prices increased by 5.7% to £186,000.
Jason Tebb, President of OnTheMarket, comments on February UK HPI:
Although historic, this data shows house prices continued to rise on an annual basis in February, with the average property price £13,000 higher than a year ago.
Two interest rate reductions in the second half of last year and one so far this year have had a positive knock-on effect on confidence, which the housing market relies so heavily on. However, while the rate of inflation fell by more than expected last month from 2.8 per cent to 2.6 per cent, it is expected to rise again in April as tax changes and price hikes come into effect. This may impact the Bank of England’s plans with regard to the pace of further rate reductions as it keeps a close eye on inflationary pressures.
Affordability remains a challenge but with a number of lenders reducing their mortgage pricing over the past few weeks, this may continue to ease if Swap rates decline and other lenders follow suit. Cheaper mortgage rates would certainly help boost activity and transactions, which are of benefit not just to the housing market but wider economy.
