The rate of house price growth in the UK slowed in February, as a wave of homes entering the market signalled a stronger buyers’ market. However, London is facing a notable dip in demand, with a “stamp duty hangover” setting in as prospective home buyers hit pause ahead of upcoming tax changes.
According to Zoopla, the annual rate of house price growth in the UK dropped to 1.8% in February, down slightly from 1.9% in January. The average price of a home across the UK now stands at £267,500.
One major factor driving this shift is the significant increase in the supply of homes for sale. From 1 April, an estimated 150 councils across the UK are set to double council tax on second homes, a policy that is expected to further increase the number of properties on the market, especially in regions popular with second-home buyers.
Areas such as the South West of England, which includes hotspots like Truro in Cornwall and Torquay in Devon, have already seen house prices dip in response.
At the same time, prices are rising sharply in parts of northern England and Scotland. According to Zoopla, areas like Motherwell and Kirkcaldy in Scotland, and Wigan, Blackburn, Lancaster, and Bradford in northern England, are seeing rapid price growth.
The average prices in these locations range from £130,000 to £220,000, which is below the UK’s national average.