House prices and growth fears make buyers wary

HOUSE prices have held up surprisingly well across the UK over the last few turbulent years, but latest figures have cast fresh doubts on whether this can continue. Data from HM Land Registry, published on Wednesday, shows the average UK property price held at £268,000 in February, unchanged from January.

- By Harvey Jones

Prices remain 5.4% higher than a year ago, but with stark regional differences as pricey London stagnates, while cheaper areas of the North enjoy a mini boom.

Overall, the market is slowing as taxes rise, growth falters, affordability remains tight and US President Donald Trump's trade threats inject fresh turmoil into global markets.

So, is this a pause for breath before the market picks up again, or the first wobble in an unsettled year ahead?

STAMPED OUT

Some of February's resilience is down to a final push by buyers to complete purchases before March 31, when Chancellor Rachel Reeves called time on a temporary stamp duty cut.

Mark Eaton, chief operating officer at April Mortgages, said the looming deadline provided a huge incentive: "HMRC reported a 28% year-on-year increase in transactions during February, underlining the urgency."

This was especially clear in London, where the average first-time buyer stood to pay an extra £6,250 in stamp duty if they missed the cut-off.

North London estate agent Jeremy Leaf said February's figures were better than expected as the stamp duty deadline motivated activity.

Since then, economic concerns have intensified. But Leaf has seen one notable property market shift, with supply now exceeding demand in many areas, a reversal of the pandemic-era frenzy. "We've noticed a pause by some buyers in the hope the uncertainty proves short-lived."