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Halifax House Price Index February 2023

  • UK house prices increased 2.1% YoY in February according to mortgage lender Halifax. 
  • All UK nations and regions saw the rate of annual growth slow in February
  • Average UK property now costs £285,476 (down from £282,360 in January).

House prices stabilise

Source: Halifax, IHS Markit

Key Trends

  • The annual rate of house price growth was 2.1% for the third consecutive month in February. 
  • House prices increased 1.1% on a monthly basis, following a marginal monthly increase in January (0.2%) on the back of significant falls at the end of 2022. 
  • Annual growth reduced the most in the North East at 1.1% in February following a 3.6% rise in January. Annual growth fell the least in Scotland at 2.2% in February compared to 2.3% in January. 
  • London saw average house prices fall 0.9% to £526,842 from January’s £530,416, but house prices in the region remain over £240,000 more than the UK national average. 
  • Average prices of flats have fallen 0.3% YoY, while prices for terraced houses have broadly stagnated (+0.3% YoY). 
  • Detached houses saw prices increase 1.5% YoY in February, although this is the lowest rise since the end of 2019.


  • February saw UK house prices stabilise further, helped by recent reductions in mortgage rates, climbing consumer confidence and a resilient labour market. 
  • The cost of a home nonetheless remains down on a quarterly basis, suggesting a continued downward trend. 
  • In cash terms, average house prices are down around £8,500 (2.9%) on the August 2022 peak but are still almost £9000 above values seen at the beginning of 2022, as well as being above pre-pandemic levels.
  • Most sellers will therefore benefit from price gains made during the pandemic, but high prices will continue to discourage buyers in the near-term. 
  • In the long-term, falling property values could boost buyer confidence, but this depends closely on the trajectory of interest rates, cost-of-living pressures and the continued resilience of the labour market.

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