House prices rose by £3,000, or 0.8%, in February 2024, and now stand at a level first seen in February 2022, new data from e.surv has revealed.
This is the highest monthly increase since September 2022, some 17 months ago.
Although the annual average sale price of completed home transactions using cash or mortgages in England and Wales fell by some £10,750 to £363,249, this still represents
a near 1% gain over the -3.8% fall in the annual rate seen in January.
The area with the biggest monthly increase in prices was Merthyr Tydfil, up by 4.3%.
In second place was Rutland with a 4% increase in prices, however, the area had the lowest transaction count of all areas.
Despite these promising statistics, e.surv revealed that, overall, transactions still remained at their lowest levels since 2013.
Richard Sexton, 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.
“In January 2024, prices rose, on a monthly basis, in 54 of the 111 Unitary Authority areas, which is 21 more than in December.
“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 added: “Our data underlines why the Chancellor was probably reluctant to stoke the market any further in this week’s 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.”
