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The latest Land Registry House Price Index shows average UK house price annual inflation was 5.4% in the 12 months to February 2025, up from a revised estimate of 4.8% in January.
 
On a non-seasonally adjusted basis, average UK house prices remained unchanged between January 2025 and February 2025, compared with a decrease of 0.5% in the same period 12 months ago.
 
The data, although potentially up to two months old, reflects the period when buyers will have been rushing to get purchase completed before Stamp Duty thresholds dropped at the end of March.
 
The average UK house price was £268,319 in February 2025, which is £13,000 higher than 12 months ago.
 
Average house prices in the 12 months to February 2025 increased in England to £292,000 (5.3%), increased in Wales to £207,000 (4.1%) and increased in Scotland to £186,000 (5.7%). The average house price increased in the year to Q4 (Oct to Dec) 2024 to £183,000 in Northern Ireland (9.0%).
 
Of English regions, annual house price inflation was highest in the North West, where prices increased by 8.0% annually. London was the English region with the lowest annual inflation, where prices rose by 1.7%.
 
Commenting on the index, Iain McKenzie, chief executive of The Guild of Property Professionals, said: “While some might be surprised given the Stamp Duty changes implemented at the beginning of April, this data likely still reflects some momentum from transactions agreed in the lead up to the deadline.
 
“More importantly, it highlights a strong continuing appetite to move, buoyed significantly by increasingly competitive mortgage rates. Lenders are clearly anticipating potential Bank of England base rate cuts amidst global uncertainty, making borrowing more attractive and helping to offset the higher transaction costs for many buyers.
 
“Although supply remains high, demanding realistic pricing from sellers, this upward tick confirms that motivated buyers, armed with better mortgage deals, are actively competing for well-priced homes.”
 
Gareth Samples, chief executive of The Property Franchise Group, addded: “Despite a backdrop of economic uncertainty and recent Stamp Duty changes, the latest figures show a resilient housing market, with prices continuing to edge upwards.
 
“The push to complete purchases before the April Stamp Duty adjustment certainly played a role in buoying short-term demand, but it’s encouraging to see this momentum carry through.
 
“While the higher cost of buying will cause some to pause, falling mortgage rates and the possibility of Bank of England rate cuts in the month ahead will help keep demand stable.
 
“As ever, pricing strategy remains key – buyers have more choice than ever, and sellers must remain competitive to stand out.”
 
Looking ahead, Jean Jameson, chief sales officer at Foxtons, said: “March brought good new momentum to the sales market, with strong demand from first-time buyers driving activity, particularly for one- and two-bedroom homes. While the Stamp Duty change was on the radar for some, it wasn’t the dominant factor, and buyer confidence remained steady.
 
“We head into Spring with a healthy level of interest and a sense of renewed energy across the market.”
 
 
 
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