House prices rise for 5th consecutive month

The average house price rose by +0.4% in February, the fifth monthly rise in a row says Halifax. The lender’s latest data shows that property prices were +1.7% higher than a year ago, slowing from +2.3% in January. A typical UK home now costs £291,699, around £1,000 more than last month. However, these figures continue to suggest a relatively stable start to 2024 and align with other promising signs of increased housing activity, such as mortgage approvals.

Halifax also notes that the average price tag of a home is now only around £1,800 off the peak seen in June 2022. It is encouraged that growth has been seen in recent months, but what happens next remains uncertain. Although lower mortgage rates, alongside expectations of Bank of England interest rate cuts this year, should help buyer confidence in the short term, the downward trend on rates is showing signs of fading.

The recent spring budget also included cuts to National Insurance. The contribution rate has been reduced by 2p again – from 10% to 8% of pay. This change is intended to reduce the historically high tax burden and will benefit employers and employees alike.