Average UK property prices have remained relatively flat since November 2014, showing no significant monthly growth. Average prices increased by 6.8% annually to £204,355 but are flat-lining so far this year. However the average price is still up significantly on February 2014 when average prices only just peaked over the £190,000 mark.
The number of property sales is down 7.8% on the month and 14.1% annually. However Haart expect the recent surge in activity to see this turning positive soon with 12 potential buyers still chasing each new property instruction.
First-time buyers are benefitting from 2.2% fall in price of average starter home. The average price of a starter home increased steadily between August and November 2014 but, much to the relief of first-time buyers, has been falling steadily in 2015 with the average now standing at £160,510.
First-time buyer registrations increased 10.5% annually, with first-time buyers now making up 41.8% of all mortgages written – up from 40.7% in January 2015.
February saw similar increases in new buyer registrations and first-time buyer registrations across London – 7.7% and 7.6% respectively. The number of new homes for sale increased on the month by 12.5%, greater than the UK as a whole.
London's average property price has fallen 1.2% annually to £466,990, but demand is still strong as over 20 buyers chase each home for sale. The strongest annual property price growth in February was seen across Northern postcodes (13.5%) and South East postcodes also saw positive annual growth.
Paul Smith, CEO of haart, comments:
“New housing stock across the UK materialised in February with supply up almost 11% in a single month which is matched by a similar uplift in buyer registrations – a sign of consumer confidence in the market.
So far this year average house prices are showing no significant fluctuations, which is good news for affordability. First-time buyers are now benefiting from a dip in the average price of a starter home by 2% annually and from broader economic factors such as low interest rates and Help to Buy incentives. Despite this promising start to 2015, the number of new home starts promised post-election by the main political parties falls well short of what is needed and we still lack a strategic long-term policy to address supply.
“After showing no growth last month, London’s average property price has declined annually – which is no bad thing for affordability and sentiment. This is no ‘boom and bust’ but the beginning of a return to normality following the peak of the market in Spring 2014. The Capital’s property market is still bustling with 21 potential buyers chasing each property for sale.”
