According to the latest data from Nationwide, the price of an average UK home increased by 3.9% in the year to February 2025.
Average UK house prices hit £270,493 in February.
The rise was driven by an increase in transactions despite higher interest rates and mortgage rates acting as a headwind for the market overall.
“Housing market activity has also remained resilient in recent months, despite ongoing affordability challenges. Indeed, the second half of 2024 saw a noticeable pick up in total housing transactions, which were up 14% compared with the same period in 2023,” said Robert Gardner, Nationwide’s Chief Economist.
“Despite a rise in house prices, we believe that growth is likely to face pressure and remain steady, as higher borrowing costs start to affect buyers, despite the market’s continued resilience,” said Daniel Austin, CEO and co-founder at ASK Partners.
“Investors and developers in the residential sector remain motivated by the supply demand imbalance and under the new government, we think there will be more projects that get off the ground. We are seeing a greater variety of housing options, such as co-living schemes, coming to market which fulfil the growing requirements of younger professional buyers. If prices flatten and interest rates start to fall, we will see more first-time buyers able to step onto the property ladder.”