UK’s average house price growth slows to -0.2% – ONS

The average UK house price fell by 0.2% year-on-year in the 12 months to February, according to the latest figures published by the Office for National Statistics (ONS)

This was up from a decrease of 1.3% in the year to January 2024, a figure the ONS has revised from last month, leaving the average UK house price at £288,000.

In the year to February, the average house price fell in England to £298,000 (-1.1%), and in Wales to £211,000 (-1.2%).

In Scotland, however, the average house price climbed to £188,000 (5.6%), while the average in Northern Ireland increased by 1.4% to £178,000 in the year to Q4 2023.

The ONS suggested the rise in Scotland’s annual inflation rate in recent months is more reflective of Scotland’s average house price falling this time last year, rather than increasing in recent months. The Scottish average fell in winter 2022 to 2023, reaching a low point in February 2023.

Sales director at Standard Life Home Finance, Kay Westgarth, commented: “Amid falling inflation and an acceptance of a ‘new normal’ for mortgage rates, today’s figures show that the property market remains on a stable footing.

“With a base rate cut firmly on the horizon, we can expect to see renewed competition among lenders vying for market share and sustained activity as we move through the year.

“Despite this optimistic outlook, we cannot ignore the high mortgage repayments currently faced by today’s borrowers, particularly those moving from a fixed-term plan on lower rates. House prices comfortably outpacing wage growth for a sustained period means many are having to dig deeper into their pockets to meet monthly repayments.”

Commercial director at Fignum, Josh Skelding, added: “Despite the initial rate cuts by the ‘big six’ lenders at the beginning of the year, the momentum of the mortgage price war has slowed. With financial markets now adjusting their expectations for an interest rate cut later in the year and economic uncertainties driving up swap rates, lenders are gradually reverting to higher pricing, which is reflected in house prices.

“Yet, amid the uncertainties, there are reasons for optimism. Moving into the spring months, which typically witness a surge in home listings unlike any other season, the market is poised to entice more potential buyers, driving increased engagement.”



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