In the UK, house prices are forecasted to rise in February and March, with the Midlands and northern England seeing the greatest gains. A top property expert predicts that home values will advance across multiple regions in the next weeks, indicating that the housing market will continue to rebound.
The forecast continues a positive trend, with property prices rising for five consecutive months, the most recent of which was in January. According to Nationwide's monthly housing survey, the UK average home costs £268,213. While the latest increase of 0.1 per cent is less than the previous month's 0.7 per cent gain, it maintains the overall upward trends. However, the yearly house price increase has slowed to 4.1 per cent from 4.7 per cent in December.
Some regions are experiencing stronger buyer demand, affordability remains a significant issue, exacerbated by higher borrowing costs. Market observers expect property values in the Midlands, northern England, and parts of Scotland to see the strongest increases in February and March, with a more sustainable balance between wages and housing costs.
Despite these regional gains, the overall market remains affected by affordability constraints. While the overall market faces affordability constraints, t property values in the Midlands, northern England, and many parts of Scotland will see stronger gains, emphasising that the market is caught between "short-lived boosts and persistent affordability headwinds.
Looking ahead, the property market's performance will depend mainly on how lending conditions evolve, with potential policy changes expected to influence pricing trends in the coming months.
