House prices unexpectedly dip in February - Halifax
By Michele Maatouk
Date: Friday 07 Mar 2025
(Sharecast News) - UK house prices unexpectedly dipped in February, according to data released on Friday by mortgage lender Halifax.
Prices nudged down 0.1% following a 0.6% increase in January, and versus expectations for them to tick up 0.3%.
On the year, house prices were up 2.9% in February, unchanged on the previous month.
The average price of a home stood at £298,602, down from £298,815.
Amanda Bryden, head of mortgages at Halifax, said: "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."
Ashley Webb, UK economist at Capital Economics, said: "The small 0.1% m/m fall in Halifax house prices in February is at odds with the 0.4% m/m rise in the Nationwide measure and suggests the recent rise in mortgage rates and/or the weakness in the wider economy is weighing on housing demand and prices a bit more than we previously thought.
"The recent deterioration in the outlook for employment may mean house price growth softens further over the coming months."
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