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UK house prices reveal another month of growth: Where is best place to buy?

Houses, UK.
Houses, UK. Copyright Canva
Copyright Canva
By Greta Ruffino
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The average price of a home in the UK was £281,000 as of February, according to new figures. But prices vary significantly across different regions.

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In February, house prices in the UK increased by an average of 0.4% on the previous month. However, there has been an annual decline of -2%, according to the latest UK House Price Index (UK HPI).

The annual price fall lowers the average house price in the UK to £281,000 (€328,000), with prices varying significantly depending on the location of the property.

Average Price in England for February 2024

The North East saw the highest monthly increase in house prices, rising by 3.2% in the year leading up to February 2024. Meanwhile, the North West experienced the highest annual growth, with prices increasing by 2.9% over the same period.

Despite an annual price fall of -4.8%, London remains one of the most expensive markets, with the average property value at £503.000 (€588,000).

Conversely, the average property value in Wales is less than half, standing at £211,000 (€246,000), and experiencing an annual price fall of 1.2%.

UK housing market and the mortgage landscape

In February, there were 82,940 transactions involving houses or residential properties being bought or sold, with each transaction valued at £40,000 (€46,000) or more, a 6% decrease compared to February 2023, according to the UK Property Transactions Statistics.

UK mortgage rates fell for years, making homes more affordable but also boosting demand and prices. 

While mortgage rates have eased from the summer's peak, the Bank of England's decision to maintain base interest rate at 5.25% in September contributed to a rise in UK house prices.

While most will see a modest increase in monthly payments, over a million homeowners could face hikes exceeding £300 (€350) by late 2026 according to Statistics & facts.

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