According to the latest national HPI data, the growth rate of house prices in February stabilized at 3.9% at 3.9% in February.
The latest data also showed that house prices rose 0.4% in the month, the sixth consecutive month of earnings.
Commenting on the numbers, Robert Gardner, chief economist at the nation, said: “Despite the ongoing affordability challenges, housing market activity has also remained resilient in recent months. Indeed, the second half of 2024 saw a clear reception in overall housing transactions, up 14% from the same period in 2023.
However, overall accounted for 2024, and transactions remained lower than the pre-pandemic level in 2019 (6%).
“In terms of transaction model, it is worth noting that first-time buyer activity continues to resume, with mortgage completions in 2024 only below the 2019 level. Given the interest rate environment, this represents a steady performance – for example, the five-year fixed mortgage rate is currently around 4.4% (with a deposit of 25% borrower), compared to 2% in 2019.”
April Mortgage Chief Operating Officer Mark Eaton commented: “As it is the sixth consecutive month of national records, a feat of 0.4% per month is not appropriate.
“In the expensive rental market, millions of Brits are trapped in expensive rental markets, and those who want to escape and climb the property ladder are keeping demand high and the market fluctuates. At the same time, homes are not built quickly enough to meet demand.
“There are increasing prices and more first-time home buyers are already owning homes,” he added.
“For many areas of the country have not been able to afford it for many years. Our own research shows that in some areas, buyers need more than £200,000 in deposits to provide average-priced housing based on typical loan restrictions imposed by major banks.”
“Despite rising housing prices, we believe that despite the continued resilience of the market, growth may face pressure and remain stable as higher borrowing costs start to affect buyers. Investors and developers in the residential sector are still motivated by the imbalance of supply and demand, and under the new government, we think more projects will stand out.”
He added: “We are seeing more housing options, such as co-living plans, which meet the growing demands of young professional buyers. If prices get flat and interest rates start to drop, we will see more first-time home buyers able to step on the real estate ladder.”
