House prices rise 1.8% as regional divide persists

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House prices rise 1.8% as regional divide persists

The latest house price index from e.surv Chartered Surveyors puts the average price across Great Britain at £329,000 in February,

That’s the equivalent of an annual growth of +1.8%, and activity has strengthened during the first two months of the year.

The firm points to improved affordability, lower volatility in mortgage pricing and the return of buyers who delayed purchases last autumn.

Mortgage valuation volumes show that, historically, this level of valuation activity tends to translate into completed sales within two to three months.

House prices fall

However, house prices month-on-month show a –0.1% change, while quarter-on-quarter movement stands at –0.4%.

Affordability continues to influence buying decisions, particularly in higher value regions.

At the same time, lenders remain cautious around margins as borrowing costs fluctuate.

Regionally, Scotland continues to lead the market with annual growth reaching +4.3%.

The average property price is now £226,500.

Regional price rises

The North West and Wales follow closely behind with annual increases of +3.4%, and average prices of £249,000 and £235,500 respectively.

Yorkshire also posted annual growth of +3%.

Prices in the West Midlands rose +2.8% to £279,500, while the East Midlands recorded +2.3% growth with an average value of £266,000.

London remains weaker and prices are –2.5% lower year on year, extending a sequence of 34 consecutive months of annual declines.

In the South East and East of England, prices remain slightly higher than a year earlier with declines of between –0.6% and –0.7%.

Volatile backdrop

The firm also points to March beginning with an unsettled global backdrop and creating volatility across financial markets.

Swap rates have become less predictable, leaving a lending environment that differs from expectations earlier in the year.

Some lenders have already increased mortgage pricing or withdrawn products over the past week.

Despite that, current mortgage rates remain below levels recorded in late 2023.

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