Annual Growth in UK House Prices

The United Kingdom's housing market experienced a notable annual growth of 3.9% in February, as per the latest Nationwide House Price Index. This marks a significant increase from the previous month, with the index rising by 0.4%. The average house price has now reached £270,493, up from £268,213 in January.

Resilience in Housing Market Activity

Despite the ongoing challenges of affordability, the housing market activity has shown remarkable resilience. The latter half of 2024 witnessed a 14% increase in total housing transactions compared to the same period in 2023. A notable recovery in first-time buyer activity was observed, with mortgage completions in 2024 just 5% below the levels of 2019.

Robert Gardner, Nationwide's chief economist, highlighted the recovery in first-time buyer activity as a positive sign for the market's health and future growth.