The average cost of real estate in the UK, according to Halifax, decreased by 0.1% in February 2025 to 298,602 pounds, despite forecasts by analysts who expected a rush before the stamp duty increase.
Analysts had forecast growth of 0.3% month-on-month and 3.1% year-on-year, but the UK's largest mortgage lender said the annual rate also fell short of expectations, amounting to 2.9%. Economists and industry experts believed that housing prices would continue to rise due to lower mortgage rates and the desire of buyers to complete transactions before the stamp duty change, which will occur on April 1.
The Bank of England lowered its base rate to 4.5% last month. At least two more reductions of 0.25 percentage points are expected this year. "The February figures highlight the fragile balance in the UK housing market," said Amanda Bryden, head of mortgage loans at Halifax.In January, prices for apartments and houses in the UK increased by 0.7%, reaching a record high. This followed a 0.2% decline in December 2024.
Source: The Guardian
