UK house prices rose for the fifth consecutive month in February, up by 0.4%, or £1,091, in cash terms, with the average house price now costing £291,699, according to the latest Halifax House Price Index.

On an annual basis, house prices are 1.7% higher than a year ago, slowing from 2.3% in January. However, these figures continue to suggest a relatively stable start to 2024 and align with other promising signs of increased housing activity, such as mortgage approvals. In fact, the average price tag of a home is now only around £1,800 off the peak seen in June 2022. 

Kim Kinnaird, Halifax Mortgages director, said: “While it is encouraging that we’ve seen growth in recent months, what happens next remains uncertain. Although lower mortgage rates, alongside expectations of Bank of England interest rate cuts this year, should help buyer confidence in the short term, the downward trend on rates is showing signs of fading. 

“Even with growing wages and inflation falling back, raising a deposit and affording a sizeable mortgage remains challenging, especially for those looking to join the property ladder, so it remains a possibility that there could be a slowdown in the housing market this year.”