The UK experienced an unexpected drop in house prices last month, influenced by economic concerns outweighing the anticipated surge in transactions ahead of anticipated stamp duty increases in April. According to Halifax, the average property price saw a modest 0.1% decrease in February, reaching £298,602, despite having achieved a record high in January. Analysts had predicted a 0.3% increase in monthly growth and a 3.1% annual rise, but Britain’s largest mortgage lender reported lower-than-expected figures at 2.9%. Experts had anticipated house prices to keep climbing, supported by falling mortgage rates and a rush to finalize purchases before stamp duty changes. Recent rate cuts and deals, such as HSBC’s reduction of its standard variable rate to 6.74%, the lowest in two years, have contributed to increased buyer activity. However, the upcoming changes to stamp duty in England and Northern Ireland from April, affecting tax thresholds for first-time buyers and the zero-tax threshold, have led to uncertainties. Halifax’s figures showed two monthly dips in the last six months, contrasting with Nationwide’s continuous growth over the same period. Despite the slowdown, market activity remains strong, indicating a resilience among buyers despite higher borrowing costs. Regional growth variations were noted, with Northern Ireland showing the strongest growth and Yorkshire and Humberside recording significant increases. While affordability challenges persist, the limited housing supply and sustained demand suggest property prices may still rise this year, though at a slower pace.

Source: https://www.theguardian.com/business/2025/mar/07/uk-house-prices-fall-unexpectedly-says-halifax