Annual house price growth slows to 5.5%: UK HPI

Average UK house prices increased by 5.5% in the 12 months to February, down from 6.5% in January, according to the latest UK House Price Index from the ONS and Land Registry.

The average UK house price was £288,000 in February, which is £16,000 higher than 12 months ago, but £5,000 below the recent peak in November 2022.

Average house prices increased over the 12 months by 6.0% in England, 6.4% in Wales, 1.0% in Scotland, and 10.2% in Northern Ireland.

The West Midlands saw the highest annual percentage change of all English regions in the 12 months to February 2023 at 8.6%, while London saw the lowest at 2.9%.

The average UK house price has now fallen for the third consecutive month, on both a seasonally adjusted basis (-0.3%) and a non-seasonally adjusted basis (-1.0%).

Scott Clay, head of introducers at Together, commented: “The fall in February’s house prices from 6.5% to 5.5% shows the current lack of consumer confidence in the market. Potential sellers, while keen to pursue property plans in what is typically a seasonally busier period, may be inclined to wait for further stability.

“However, that is not to say all activity is at a standstill. Buyers may be able to benefit from lower rates as inflation begins to start falling to lower levels than their peak last October.

“For those approaching mortgage renewals who don’t fit the criteria of high-street banks, it is essential to consider specialist lenders, as they can take into account individuals’ circumstances and offering more flexible borrower finances to help secure home ambitions.”

Alex Lyle, director of Richmond estate agency Antony Roberts, said: "February seems a long time ago now and the market moves on apace – over the Easter break we have had plenty of new enquiries with busy diaries this week and the weekend ahead. Now that the sun’s coming out, the housing market appears to be picking up accordingly.

"There is no single housing market with regional differences and variations within regions. Quality houses with desirable addresses continue to be well received by buyers, who are meeting, if not exceeding, asking prices. We are finding that prices in the £1.5m-plus family home market are holding well, with 98 per cent of the asking price on average being achieved in the first quarter of this year.

"The market for flats is not proving as strong as houses, with prices more sensitive due to less demand. It is essential that vendors price correctly and are not overly optimistic if they are to achieve a successful sale."