House prices are forecast to rise further in February and March, according to property expert Mish Liyanage, CEO of Mistoria Estate Agents. He predicts that homeowners in the Midlands and northern England will see the greatest gains.
Mr. Liyanage stated: “As February begins, the property market is cautiously advancing, with prices showing modest growth amid persistent affordability challenges.
“While house prices are stabilizing, affordability remains a key concern. Some regions are experiencing increased buyer interest, but higher borrowing costs continue to restrict purchasing power across the sector.
“With impending policy changes, market trends will largely be dictated by evolving lending conditions in the coming months.”
According to Nationwide, house prices increased for the fifth consecutive month in January. However, the annual growth rate has slowed, reflecting signs of a softening market. The building society’s monthly report found that prices edged up by 0.1% in January, bringing the average property price to £268,213. This marked a decline from the 0.7% monthly rise recorded in December and the 1.2% increase in November.
On an annual basis, UK house price growth slowed to 4.1% in January, down from 4.7% in December. While some indicators suggest a cooling trend, the 4.7% annual rise was the strongest since October 2022, following the financial instability caused by former Prime Minister Liz Truss’s mini-budget.
Mr. Liyanage identified key regions that are likely to see the most significant price increases over the next few weeks. “While affordability remains a challenge across the market, I anticipate that property values in the Midlands, northern England, and select parts of Scotland will witness stronger growth in February and March. These areas maintain a better balance between wages and housing costs.”
Conversely, southern England is expected to see slower price increases. “Given the already high property prices in the South, growth is likely to be limited. Elevated mortgage rates and rising living costs will continue to exert pressure on these markets, making affordability a persistent issue.”
The UK housing market in early 2025 remains finely balanced between periods of temporary growth and ongoing affordability concerns.
NOTES FOR EDITORS: Over the last 15 years, The Mistoria Group’s strategic approach has resulted in a varied portfolio encompassing more than 2,000 tenancies, including residential, student, professional HMOs, and commercial properties across eight branches in the North East and West. For more information on property sales, purchases, or joint venture opportunities, contact t: 0800 5003015 e: info@mistoriagroup.com
