HOUSE PRICES will continue to rise in February and March, a leading property expert has predicted.
Mish​antha Liyanage, the CEO of north-west based Mistoria Estate Agents, also believes those who own homes in the Midlands and the north of England will benefit the most.
Property expert Mr Liyanage said: “As we move into February, the housing market is continuing to tread a cautious path, with property prices showing only marginal growth as affordability challenges persist. Property prices are stabilising, but affordability remains a key challenge. While some regions are seeing stronger buyer demand, higher borrowing costs continue to limit purchasing power across the market.
“With key policy changes on the horizon, pricing trends will depend largely on how lending conditions evolve in the coming months. I expect to see price rises in both February and March in many regions. I am not talking about double digit rises but many areas can expect to see significant boosts.”
House prices rose for a fifth consecutive month in January, but the annual rate of growth slowed as the UK property market showed signs of “softening”, according to Nationwide.
The building society’s monthly tracker found that prices in January rose 0.1% on the previous month, with the cost of an average home at £268,213, down on the 0.7% monthly increase recorded in December and 1.2% rise in November.
However, on an annual basis, the rate of increase in UK house prices slowed to 4.1%, down from 4.7% in December.
While Nationwide noted that the figures showed that house price growth was softening at the start of this year, the 4.7% annual rate marked the strongest rate of growth since October 2022, the month after the former prime minister Liz Truss’s disastrous mini-budget sent borrowing costs soaring.
Pinpointing the UK regions he believes will see the best rises in coming weeks, Mr Liyanage, whose the Mistoria group has branches in Salford, Bolton and Liverpool , said: “While the overall market faces affordability constraints, I expect property values in the Midlands, northern England, and many parts of Scotland will see the stronger gains in February and March. These areas offer a more sustainable balance between wages and housing costs. The combination of steeper mortgage costs and higher living expenses is expected to limit growth, leaving these markets more vulnerable to affordability pressures. The UK housing market in early 2025 remains in a delicate balance between short-lived boosts and persistent affordability headwinds.”