Economists have been predicting a flurry of buyers trying to complete purchases before stamp duty increases in April.
The average UK house price rose by 0.4% to £270,493 (€328,278) during February, up from 0.1% the month before, according to Britain’s biggest building society Nationwide.
The growth in February was the sixth month in a row that house prices in the UK have grown despite challenges remaining in terms of affordability.
Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said: “Housing market activity has remained resilient in recent months, despite ongoing affordability challenges. Indeed, the second half of 2024 saw a noticeable pick up in total housing transactions, which were up 14% compared with the same period in 2023.”
He noted “a noticeable pickup in total housing transactions” in the second half of 2024, although the number of deals during the year was still 6% below the level of 2019, the last year unaffected by the pandemic.
Gardner added: “The last 12 months have seen a gradual increase in the number of buy to let purchases involving a mortgage, with rental increases and an easing in buy to let mortgage rates improving the ability to raise finance. Nonetheless, activity remains quite subdued compared to historic levels.”
He warned that the changes in stamp duty due to come into effect in April could “generate volatility in transactions in the near term, as buyers bring forward their purchases to avoid the additional tax”.
