February saw the biggest house price rise in 17 months

UK house prices saw average values rising by £3,000 in February, data reveals.

The findings from chartered surveyors, e.surv, say this equates to a 0.8% increase from January – the biggest monthly rise for 17 months.

The firm says that house prices rose in 54 unitary authority areas out of 111.

Homeowners in Merthyr Tydfil saw the best result with a 4.3% hike in prices – though low transaction volumes skew the average price metrics.

Rutland and Flintshire saw 4% and 3.3% rises respectively, with the latter reporting a robust sales figure of 31 properties for January.

‘Housing market is showing signs of recovery’

Richard Sexton, a director at e.surv, said: “January’s data confirms the housing market is showing signs of recovery.

“On a monthly basis, house prices have risen, in this instance by a significant £3,000, or 0.8%, in February 2024, and now stand at a level first seen in February 2022.

“This is the highest monthly increase since September 2022, some seventeen months ago.”

He added: “In January 2024, prices rose, on a monthly basis, in 54 of the 111 Unitary Authority areas, which is 21 more than in December.”

Broader picture for house prices remains less rosy

However, e.surv says the broader picture for house prices remains less rosy with England and Wales seeing a 2.9% dip in prices compared to the previous year.

This represents a slight recovery from January’s -3.8% annual fall, but it does point to a positive shift in pricing trajectory.

Data shows that the average property value of £363,249 remains significantly lower than the preceding year by £10,750.

January’s figures showed only nine unitary authorities had year-on-year price rises, a slight drop from December’s figures.

Gwynedd stands out for the second consecutive month with a 7.9% annual price rise.

‘Tight supply is playing a part in this bounce back’

Mr Sexton said: “The tight supply is playing a part in this bounce back, coupled with improved affordability as borrowing rates have fallen and average wages grown.

“Whether this persists remains to be seen but expectation at the Bank of England is that rate cuts will materialise in the second half of the year, and this should feed into further reductions in borrowing costs.”

He continued: “Our data underlines why the Chancellor was probably reluctant to stoke the market any further in the Budget.

“Few in the property industry were calling for more short-term shots in the arm from the Treasury.

“However, the Budget was another missed opportunity to address some systemic long-term issues with regard to helping people get on the housing ladder in the first place.

“As a result, the big issues of supply and affordability remain unaddressed and will likely become very live election issues.”

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