Annual house price growth accelerated to 5.4% in the year to February, new Office for National Statistics (ONS) data has shown.

February’s annual rate of growth was up from the 4.8% that the ONS reported for the 12 months to January, to take the average UK house price to £268,000.

Annual house price inflation has been generally increasing since its recent low point of -2.7% in the 12 months to December 2023.

According to the latest UK House Price Index from the ONS, the average house price for England was £292,000 in February, up 5.3% (£15,000) from a year earlier. This annual rise was also higher than in the 12 months to January (4.5%).

In Wales, the average house price was £207,000, up 4.1% (£8,000) from a year earlier, while in Scotland, the average was £186,000, up 5.7% (£10,000) from February 2024.

The average house price for Northern Ireland was £183,000 in Q4 2024, up 9.0% (£15,000) from the same quarter last year.

Head of mortgages at Atom bank, Richard Harrison, said that house price inflation has been “buoyed” in recent months by buyers “desperately scrambling to get completions over the line” before the stamp duty deadline.

“While the stamp duty deadline has now passed, I’m not sure we should expect to see much of an impact on house prices, particularly given the prospect of lower mortgage rates to come,” Harrison commented.

“Ongoing market turmoil has had an impact on base rate expectations, with some suggestions there could be as many as four further cuts this year, while today’s lower than expected inflation data strengthens the case for cuts to be made soon. We are already seeing lenders cutting rates, so even without the allure of a lower stamp duty bill, would-be buyers may feel more confident in pushing ahead with a purchase.”

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