March 11

Prices Approach 2022 Peak for Capital Appreciation Boost


The rising popularity of serviced apartments attracts guests seeking hotel-like comforts while maintaining their privacy. To stand out among the competition and increase profitability, it’s crucial to enhance your marketing strategies for your multiple properties in town.

In February, the UK housing market witnessed its fifth consecutive month of price growth, with an increase of 0.4% or £1,091, according to data from Halifax. The average house price now stands at £291,699. While the annual growth rate has slightly slowed to 1.7% compared to January’s 2.3%, these figures suggest a resilient and steady beginning to the year in the housing sector. This stability aligns with positive indicators such as a notable rise in mortgage approvals, indicating sustained activity and confidence in the market.

The consistent upward trajectory in house prices signifies ongoing demand and stability in the property market. Despite the marginal slowdown in annual growth, the figures reinforce a positive trend, showcasing the resilience of the housing sector in the face of economic variables. The correlation with increased mortgage approvals further underscores the sustained interest and participation of buyers, contributing to the overall health of the UK property market.

The average price tag of a home is now merely £1,800 shy of the peak witnessed in June 2022, signaling a robust housing market. However, Kim Kinnaird, Halifax Mortgages Director, offers a cautious outlook, acknowledging recent growth while emphasizing the prevailing uncertainty in the housing landscape. While lower mortgage rates and anticipated Bank of England interest rate cuts provide a short-term boost to buyer confidence, Kinnaird highlights a fading trend in declining rates, indicating potential challenges ahead.

Amidst positive signs of increased housing activity, such as rising mortgage approvals, Kinnaird stresses the uncertain trajectory in the housing market. Despite encouraging elements, the director underscores the formidable hurdles faced by potential homebuyers, particularly first-time buyers aiming to navigate the complexities of raising a deposit and affording a sizable mortgage. This affordability challenge may lead to a potential slowdown in the housing market in the upcoming year, despite ongoing efforts to stimulate growth.

The sustained growth in house prices, now in its fifth consecutive month, reflects a relatively stable start to 2024. Annual house price growth stands at 1.7%, a slight deceleration from the 2.3% reported in January. These figures, sourced from Halifax, contribute to the broader narrative of a resilient housing market, yet uncertainties persist. Kinnaird acknowledges the positive impact of lower mortgage rates but highlights the need for cautious optimism, considering the nuanced challenges prospective buyers face.

As economic factors like rising wages and falling inflation attempt to counterbalance housing affordability concerns, the director anticipates a potential slowdown, urging a careful assessment of the evolving housing market landscape. The delicate balance between encouraging growth and addressing affordability gaps remains a pivotal aspect that will shape the trajectory of the UK housing market in the months to come.

Northern Ireland stands out as the strongest performer in UK house price growth, recording an impressive 5.0% increase on an annual basis. The average house price in Northern Ireland now sits at £195,956, representing a notable surge of £9,359 compared to the same period in February 2023. This robust growth underscores the resilience of the property market in this region.

Following closely, the North West experienced positive growth of 4.4% annually, bringing the average house price to £232,128. Similarly, the North East and Wales demonstrated substantial increases of 4.2% and 4.1%, respectively, over the last year. These figures indicate a widespread and sustained upward trend in housing prices across various regions in the UK.

London retains its position with the highest average house price among all regions, reaching £536,996. Notably, the capital city witnessed a positive annual growth of 1.5%, marking a significant turnaround from the previous year. This shift suggests a renewed momentum in London’s property market after a period of stagnation.

On the other hand, Eastern England experienced a dip in prices last month compared to the rest of the UK’s nations and regions. Homes in this region sold for an average of £329,927, reflecting a decrease of 0.8%, equivalent to £2,794 less than the corresponding period in 2023. This localized decline highlights the nuanced dynamics influencing housing markets across different parts of the country.


Capital Appreciation Boost, Halifax, Housing Market UK

You may also like

Leave a Reply

Your email address will not be published. Required fields are marked

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}

Get in touch

0 of 350