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Average UK Property Prices Move Towards Recovery in February

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    UK House Price Index Shows Marginal Recovery in the UK in February

    The latest ONS HPI shows that the decline in house prices across the UK slowed down in February.

    In the 12 months leading up to February 2024, average UK house prices dropped by 0.2%. This is an improvement from last month’s y-o-y figures when prices fell by 1.3%.

    In February, the typical price for a UK home was £281,000, the same as a year ago. Prices in England fell to £298,000, while in Wales they dropped to £211,000. However, in Scotland, prices rose to £188,000. In Northern Ireland, they increased to £178,000 in the last quarter of 2023. Why not read more about the latest changes to stamp duty in Wales with our guide.

    Between January 2024 and February 2024, average UK house prices went up by 0.4%, compared to a 0.7% decrease during the same period the previous year.

    The North East experienced the highest annual house price increase at 2.9%, while London saw the lowest at a 4.8% decrease in the 12 months leading up to February 2024.

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      What Is the Latest for the North West Property Market?

      According to the UK House Price Index, the average property price in the North West is around £214,000, significantly less than the average price for the UK and England.

      Properties in the region also saw a percentage growth of 1.40%, bucking the national trend.

      Looking at some major cities, Liverpool has an average property price of around £180,000 and a percentage change y-o-y of 1.80%. With one of the fastest-growing economies in the UK (per the Data City), it’s easy to see why investors look to Liverpool for buy-to-let property investments, mainly when the average rental yield is 7.44% (per Zoopla).

      Find Out More: Learn more about the best buy-to-let areas in Liverpool and investment property for sale in Manchester with some of our guides and articles.

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      What Do the Experts Make of the Latest UK House Price Index Data?

      Head of UK residential research at Knight Frank, Tom Bill, said: “The prospect of lower mortgage rates becomes more remote with each release of economic data.

      “Stubborn inflation means the five-year swap rate is just under 4.5%, which isn’t good news for anyone hoping to agree a mortgage starting with a ‘3’ any time soon. Higher borrowing costs, increased supply and a wave of owners rolling off sub-2% mortgages agreed in early 2022 are all putting downward pressure on house prices.

      “That said, mortgage approvals hit a 17-month high in February, which means there should be a recognisable spring bounce this year. We expect UK prices to rise by 3% in 2024 as core inflation is tamed and borrowing costs eventually begin to fall.”

      CEO of Propertymark, Nathan Emerson, said: “A month-on-month growth in house prices is a sign of prosperous green shoots on the run-up to spring, which is historic for its higher demand from buyers and sellers. This is showing strength within the market and signs of a stabilising economy.

      “Propertymark’s own Housing Insight Report showed that there was an 18 per cent increase in new properties coming to the market. Furthermore, the number of mortgage approvals made to home buyers increased from 56,100 in January to 60,400 in February, according to recent Bank of England figures, showing that all signs are pointing in the right direction, which should provide aspiring or current homeowners with the confidence they deserve right now.”

      Learn more about buy-to-let in the UK with some of our handy area guides, including:

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      Dale Barham

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      Dale is a property content writer at RWinvest. Keeping a close eye on the UK property market, Dale helps our readers stay informed and up to date on the latest market news and statistics.