House prices are nearing their all-time highs, having increased for a fifth consecutive month in February. This rise is attributed to a decline in mortgage rates, which has attracted more buyers, as reported in an industry survey.
The Halifax house price index revealed that property values rose by 0.4% in February compared to January.
Despite this, there is concern about future price trends following recent increases in mortgage rates, especially with the Bank of England’s expectation to maintain higher interest rates.
The survey indicated that the average house price is now £291,699, an increase of approximately £1,000 from the previous month.
Year-over-year, house prices in the same month experienced a 1.7% growth, a slight deceleration from the 2.3% annual increase observed in January.
Kim Kinnaird, director of Halifax Mortgages, commented:
“We’ve observed encouraging growth in the past few months, but the future trajectory remains uncertain.
While the short-term boost in buyer confidence may be supported by lower mortgage rates and anticipated cuts in the Bank of England’s interest rates this year, the trend of decreasing rates appears to be slowing.”
