For the fifth month in a row, home prices in the U.K. have increased from the previous month, with prices up 0.4% in February, according to Halifax’s House Price Index, released on Thursday.
Additionally, prices were up from the same time last year, increasing 1.7% to £291,699 (US$374,779)—which is about £1,000 higher than January.
“Yet further proof that the property market is back on track with a fifth consecutive monthly increase demonstrating that real momentum is now starting to build,” said Marc von Grundherr, director of Benham and Reeves.
MORE: More Affluent Home Sellers Are Turning to Auctions. That’s Great News for Buyers.
The U.K.’s housing market suffered last year amid rising interest rates, but the market has continued to show signs of bouncing back since the increases were halted.
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“U.K. home buyers have welcomed the increased degree of market stability that has come following the decision to hold interest rates at 5.25% since September of last year, and as home buyers have returned to the market, we’ve seen declining house prices start to reverse,” said Guy Gittins, CEO of Foxtons.
Property prices increased the most in Northern Ireland, which saw an annual increase of 5%, bringing the average home price to £195,956, according to the report.
London, which maintains the U.K.’s highest average house price, had prices increase 1.5% on a yearly basis—the city’s first positive annual growth since January 2023—to an average of £536,996.
“The higher cost of borrowing does, of course, remain an obstacle for many buyers, but with a potential rate cut on the horizon, we expect market conditions to continue to improve as the year progresses,” said Jason Harris-Cohen, CEO of Open Property Group.
