UK house prices stall after January's surge, Rightmove says

(Sharecast News) - UK house price growth stalled in February after the strongest increase in over a decade the previous month, according to figures out on Monday from Rightmove, though the outlook for demand still remains bright as affordability continues to improve. The average price of a newly listed home for sale was £368,019 in February, down £12 over the month (-0.0%) following a 2.8% surge in January.

The previous month's jump was the largest-ever increase for a January and the strongest monthly rise since June 2015, as confidence rebounded after taking a hit due to the Autumn Budget.

However, high choice of homes for sale and steadying buyer activity have kept a lid on prices this month.

Nevertheless, asking prices have still seen their strongest start to the year since 2020, even after accounting for January's standstill.

"There are still lots of homes for sale, and buying activity isn't as strong as this time last year, when many buyers were rushing to move before the stamp duty increase in England," said Rightmove's property expert Colleen Babcock.

"So in February, sellers have taken a more cautious approach by holding onto January's gains rather than pushing prices higher, at a time when competition is high and the market is still very price-sensitive."