UK house prices experience fifth consecutive monthly increase

According to the latest data from Halifax, the average house price in the UK has edged closer to its peak recorded in June 2022, with a modest 0.4% increase in February. This marks the fifth consecutive monthly rise, leaving the average house price just £1,800 shy of the previous peak. Despite this incremental growth, the annual increase in property prices stood at 1.7%, a slight decrease compared to the previous month's 2.3%.

In February, the average UK house price stood at £291,699, reflecting a marginal £1,000 uptick from the previous month. Regional variations persisted, with London retaining its status as the area with the highest average house price, reaching £536,996. Meanwhile, the north-east recorded the lowest average price at £171,294, albeit with a notable 4.2% increase compared to the previous year. Notably, property prices experienced declines in the south-east and eastern England, dropping by 0.6% and 0.8%, respectively.

In a significant move outlined in the recent budget announcement, Chancellor Jeremy Hunt unveiled measures aimed at reforming property taxes. One key change is the reduction in the higher rate of capital gains tax on residential properties, slated to decrease from 28% to 24% starting April 2024. The rationale behind these adjustments is to stimulate market activity by encouraging landlords and second homeowners to divest their properties, thus augmenting the supply available to a diverse range of buyers, including first-time buyers aspiring to enter the housing market.