UK House Prices Rise 0.4% in February, Sixth Monthly Gain

UK house prices rose by 0.4% in February, marking the sixth consecutive month of growth, driven by buyers rushing to complete transactions before upcoming stamp duty changes. The average house price reached £270,493, with annual growth at 3.9%, slightly down from January's 4.1%. Economists suggest that the anticipated increase in stamp duty due to expire in March has contributed to this uptick in activity, although overall transactions remain below pre-pandemic levels. Experts predict that while March may see a surge in sales, a subsequent decline could follow as buyers adjust to the new tax landscape. The current housing market also reflects a growing preference for houses over flats, with the value gap between the two at a record high, indicating a shift in buyer behavior post-pandemic. Despite the positive trends, affordability concerns and rising mortgage rates continue to pose challenges for prospective buyers.