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House prices in the UK exceeded the forecasts in February, as the real estate market showed “resistance” despite the pressures of accessibility, and customers tried to progress in April, said the lender throughout the country.
House prices It rose 0.4 percent between January and February, taking average costs to £ 270,493. The typical price of the house was 3.9 percent higher than in February last year, the annual growth rate that was a slight drop in January with 4.1 percent.
The economists surveyed by Reuters expected an increase of 0.2 percent of the month and a 3.4 percent annual increase.
“Supervised April end of the threshold threshold of cables probably brought some customers to transfer the purchase of houses, strengthening activities and inflation of houses’ prices in early 2025,” said Elliott Jordan-Doak, an economist from Pantheon Macroeconomics. “So the market is likely to be somewhat alleviated by April.”
But with real wages, they continue to grow and unemployment remains low, “we remain comfortable with our invitation to increase the house price by 4 percent compared to the year in 2025,” he added.
In the second half of 2024, there was a noticeable takeover of total residential transactions, he said that Robert Gardner, the main economist throughout the country, increased by 14 percent compared to the same period 2023.
“The activity in the apartment market has also remained resistant in recent months, despite the liquid challenges of accessibility,” he said.
Gardner added that he expected the changes in April in early April “likely to create volatility” in transactions in the short term, as customers bring purchase to avoid additional taxes.
For example, from April, customers who will start paying for real estate levies for the first time worth £ 300,000 or more, instead of £ 425,000.
Real salaries have increased the fastest pace of 2021. In the last three months of 2024, while mortgage rates have varied in the last year as the markets have been reconsidering how much of the Bank of England will reduce interest rates.
The costs of borrowing are still significantly below the top reached in the summer of 2023.
Boe has reduced borrowing costs three times since the summer of last year, and its reference rate is now sitting 4.5 percent. Financial markets are expecting two more decreasing quarter rate by the end of this year.
“As interest rates fell last summer and in autumn, the apartments market has launched in equipment, but mortgage rates have grown in the last three months because the financial markets are now expecting less interest rates than at the end of the summer,” said Matt Swannell, an economist in Consultky Ey Atem Club.
“Nevertheless, the demand for housing has been held in the last few months because customers have been completed priority before the thresholds of on -duty stamps have returned to a normal level at the end of March,” he added.
Data throughout the country showed that the prices of houses in the UK were just 1.2 percent below their peak in the summer of 2023, when they were hit by historically high mortgage rates and a decrease in household income.
The resistance in the prices of houses is in contrast to muted growth, and the economy has not expanded in three months to September 2024. And in the last quarter of last year, only 0.1 percent increased.
The corporate available after Chancellor Rachel Reeves used her autumn budget to determine more than $ 40 billion in tax increase, most of which will fall on April by April. They also influenced the mood of the consumer, which is why households are prioritized by consumption.
House prices began to increase again last year, as mortgage rates fell and wages grew faster than inflation. The average price of the house is now 25 percent higher than in January 2020, before the pandemic.
