Map reveals areas with the highest house price growth over the past year – but caution urged as stamp duty hike looms
A MAP has revealed the areas with the strongest house price growth over the past year.
While property prices have increased across all areas over the last 12 months, the nation's largest mortgage lender has reported a marginal dip of -0.1% in average prices last month.
According to Halifax, the average house price now stands at £298,602, down from £298,815 in January 2025.
Despite the minor monthly decline, annual house price growth held steady at 2.9% in February.
Halifax warned that the forthcoming stamp duty changes, set to take effect in April, are beginning to exert slight downward pressure on house prices.
Amanda Bryden, head of mortgages at the bank, said: "The typical UK house price remained stable in February, with a slight monthly dip of -0.1%. Annual growth also held steady at +2.9%, with the average house price edging down by just £213 to £298,602.
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"February's figures highlight the delicate balance within the UK housing market.
"While there's been talk of a last minute rush on new mortgages ahead of the changes to stamp duty, inevitably we've seen some of the demand that was brought forward start to fade as the April deadline ticks closer, given the time needed to complete a purchase."
From 1 April, first-time buyers will face stamp duty on properties valued at £300,000 or more, a reduction from the previous threshold of £425,000.
Meanwhile, the stamp duty threshold for home movers will be reduced from £250,000 to £125,000.
Jonathan Handford, managing director at estate agent group Fine & Country, said: "For many aspiring homeowners, this means higher tax costs, making it more expensive to take that crucial first step onto the property ladder."
Despite the prospect of rising inflation potentially prompting the Bank of England to delay rate cuts, markets continue to anticipate further reductions.
Such a move would inevitably drive down mortgage costs, potentially supporting steady house price growth.
Andrew Montlake, chief executive of Coreco Mortgage Brokers said: "There is no shortage of economic headwinds facing the property market, and affordability is a constant challenge for many buyers, but it remains as hardy as ever.
"The hope is that the rise in inflation is brief and that the (Bank of England) base rate can be brought down sooner rather than later.
"Another rate cut or two this year would be a massive tonic for bricks and mortar."
Most regions across the UK experienced a slowdown in house price inflation in February.
However, annual house price growth remained positive overall.
Scotland notably bucked the trend, with annual growth rising to +3.8% in February, up from +2.5% in January.
The average house price in Scotland now stands at £213,014.
Northern Ireland continues to lead the UK in annual house price growth, holding steady at +5.9% in February.
Average property prices in the region are now £205,784.
In Wales, house prices increased by +2.8% year-on-year, with the average property valued at £226,811.
In England, Yorkshire and the Humber recorded the strongest annual house price growth for the first time since July 2021, rising by +4.1% compared to the previous year.
The average property price in the region now stands at £216,130.
In contrast, London saw a significant slowdown in annual house price growth, dropping from +2.6% in January to +1.6% in February.
Despite this, the capital remains the most expensive place to buy property in the UK, with an average house price of £545,183.
What's happening to stamp duty in April?
STAMP duty relief available to first-time buyers since 2022 will end in April 2025.
As a result, a first-time buyer purchasing a property valued at £425,000 will incur a stamp duty charge of £6,250.
Stamp duty is one of the additional upfront costs that purchasers may incur when buying a property.
Currently, first-time buyers are exempt from paying stamp duty on properties priced up to £425,000.
If a property is more expensive, they only pay tax at 5% on the portion above £425,000 and up to £625,000.
The lower limit for first-time buyer stamp duty exemption was temporarily increased back in 2022 from £300,000 to £450,000.
The maximum value of a property on which first-time buyers' relief also rose from £500,000 to £625,000.
Similarly, the threshold at which all other buyers begin to pay stamp duty was raised from £125,000 to £250,000.
These thresholds were set to revert to their previous levels in April 2025 unless the government decided to extend them.
Unfortunately, the Treasury has confirmed that the current thresholds will revert to their original levels in the spring.
It's a huge blow for all home buyers and means they have just months left to get a sale across the line before the thresholds at which stamp duty becomes payable fall.
Do other lenders track house prices?
It’s important to note that the Halifax House Price Index (HPI) is just one of several measures monitoring property prices across the UK.
Nationwide Building Society also tracks house prices, with its most recent HPI for February reporting an average property price of £270,493, a slight increase from £268,213 the previous month.
In addition, property platforms Zoopla and Rightmove release monthly house price data.
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According to Zoopla’s latest HPI, the average house price in January was £267,200, reflecting a 1.9% annual increase.
Meanwhile, Rightmove reported that the average UK house price in February stood at £367,994, an increase of £1,805 compared to January.
How to get the best deal on your mortgage
IF you're looking for a traditional type of mortgage, getting the best rates depends entirely on what's available at any given time.
There are several ways to land the best deal.
Usually the larger the deposit you have the lower the rate you can get.
If you're remortgaging and your loan-to-value ratio (LTV) has changed, you'll get access to better rates than before.
Your LTV will go down if your outstanding mortgage is lower and/or your home's value is higher.
A change to your credit score or a better salary could also help you access better rates.
And if you're nearing the end of a fixed deal soon it's worth looking for new deals now.
You can lock in current deals sometimes up to six months before your current deal ends.
Leaving a fixed deal early will usually come with an early exit fee, so you want to avoid this extra cost.
But depending on the cost and how much you could save by switching versus sticking, it could be worth paying to leave the deal - but compare the costs first.
To find the best deal use a mortgage comparison tool to see what's available.
You can also go to a mortgage broker who can compare a much larger range of deals for you.
Some will charge an extra fee but there are plenty who give advice for free and get paid only on commission from the lender.
You'll also need to factor in fees for the mortgage, though some have no fees at all.
You can add the fee - sometimes more than £1,000 - to the cost of the mortgage, but be aware that means you'll pay interest on it and so will cost more in the long term.
You can use a mortgage calculator to see how much you could borrow.
Remember you'll have to pass the lender's strict eligibility criteria too, which will include affordability checks and looking at your credit file.
You may also need to provide documents such as utility bills, proof of benefits, your last three month's payslips, passports and bank statements.