House prices are expected to rise further in February and March, according to property expert Mish Liyanage, CEO of Mistoria Estate Agents. He anticipates that homeowners in the Midlands and northern England will experience the most significant gains.
Mr. Liyanage commented: “As we step into February, the property market is progressing cautiously, with prices showing moderate increases despite continued affordability challenges.
“Although house prices are beginning to stabilise, affordability remains a major concern. While some regions are seeing a rise in buyer demand, higher borrowing costs continue to constrain purchasing power across the sector.
“With upcoming policy adjustments, shifting lending conditions will play a crucial role in shaping market trends over the next few months.”
According to Nationwide, house prices rose for the fifth consecutive month in January. However, the annual growth rate has slowed, indicating signs of a cooling market. The building society’s latest report revealed that prices inched up by 0.1% in January, bringing the average UK property price to £268,213. This represents a decline from December’s 0.7% monthly increase and the 1.2% rise recorded in November.
On an annual scale, house price growth eased to 4.1% in January, down from 4.7% in December. While some signs point to a market slowdown, the 4.7% annual rise was the highest since October 2022, following the financial uncertainty caused by former Prime Minister Liz Truss’s mini-budget.
Mr. Liyanage highlighted key areas likely to see the strongest price increases in the coming weeks:
“Although affordability remains a concern, I expect property values in the Midlands, northern England, and certain parts of Scotland to show the most notable growth through February and March. These regions offer a more sustainable balance between wages and housing costs.”
In contrast, southern England is likely to experience slower price appreciation.
“With property prices already elevated in the South, further growth will be limited. Higher mortgage rates and increasing living costs will continue to put pressure on these markets, keeping affordability a persistent issue.”
As 2025 unfolds, the UK housing market remains delicately positioned between short-term price gains 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
