Data from the Office for National Statistics (ONS) revealed there was no growth in average values from the previous month, but annually, this represented a 5.4% or £13,000 increase. The annual growth was higher than the rate of 4.8% in the 12 months to January.
In England, average house prices rose 0.3% month-on-month to £291,640, which was a 5.3% yearly uplift.
The average price of a house in Northern Ireland was 1.5% higher than the previous quarter at £183,259. This was a rise of 9% on the year before, the biggest annual increase recorded for any nation.
Average house prices in Wales and Scotland declined on a monthly basis, with falls of 0.7% and 1.5% to £207,382 and £185,870 respectively. Compared to a year ago, house prices in Wales were 4.1% higher and they were up by 5.7% in Scotland.
Jonathan Hopper, CEO of Garrington Property Finders, said: “Several parts of the country are seeing a post-stamp duty hangover.
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“While month-on-month figures can be volatile, this recalibration of prices could be the result of the market cooling as the distorting effect of the stamp duty increase started to fall away. Some buyers offered high in order to get their purchases through before the March deadline.
“But this doesn’t explain the fall in the prices paid in Scotland, where the cooling may be the inevitable response to an extended period of rapid price inflation. Even with February’s slight fall, average prices North of the border are up 5.7% compared to a year ago.”
Hopper said his firm was seeing many high-value homes coming onto the market, particularly in prime areas of London.
He added: “This abundance is putting buyers firmly in the driving seat and giving them the confidence and clout to negotiate hard on price.
“The supply of homes for sale is healthy, especially at the top end of the market, and with mortgage swap rates currently suggesting interest rates will be cut three times this year, the combination of a wide choice of homes and cheaper mortgages will make homeownership more attractive and affordable.”
Yorkshire and the Humber house prices see the largest growth
On a monthly basis, house price inflation in most regions across England was relatively muted, with Yorkshire and the Humber reporting the highest increase at 1.6% to £205,455.
House prices in the West Midlands saw the second-largest monthly growth at 1.1% to £246,636.
London reported the steepest monthly fall in average house prices with a 1.1% drop to £555,625.
On an annual basis, house prices in the North West rose by the most with an 8% increase to £211,977. This was followed by the North East, where there was a 7.9% yearly uptick to £160,452, and Yorkshire and the Humber, which reported a 7.5% year-on-year jump.
Small change in the value of flats
In February, the average price of a flat or maisonette rose by 3% year-on-year to £196,110, the smallest increase for any property type.
Terraced homes enjoyed the largest annual uplift with a 6.2% increase to £225,486, closely followed by semi-detached homes, which were 6.1% higher in value compared to last year at £270,925.
Detached homes were the priciest, with a 5.5% rise to an average value of £438,255.
Annually, existing resold properties were 3.2% higher in value at an average of £261,297. On a monthly basis, there was a 0.4% fall.
New-build homes reported a 28.7% increase in average prices to £406,390, which was also 6.2% higher than the month before.
Former owner-occupiers paid 5% more for homes in February than they did a year earlier, at an average price of £329,952. This represented a 0.1% decline since January.
First-time buyers saw the average price of the homes they purchased rise by 5.6% year-on-year to £227,114, which was 0.1% up on the month before.
Karen Noye, mortgage expert at Quilter, said the widening gap of how much first-time buyers were paying for homes “reinforces the affordability challenge facing those trying to step onto the ladder”.
She added: “Meanwhile, the sharp 28.7% annual surge in new build prices, compared to just 3.2% for existing homes, risks compounding that issue, particularly if developers focus on premium stock that pushes buyers towards increasingly stretched borrowing.
“Still, activity is picking up, with residential transactions up 28% year-on-year. Lenders are starting to respond, with mortgage rates edging down as financial markets anticipate further interest rate cuts. Average fixed rates are now drifting downwards, and in some cases below 4%, thanks in part to falling swap rates, which is the key measure that lenders use to price their deals.”
