House prices are set to continue their upward trend in February and March, according to leading property expert Mish Liyanage, CEO of the north-west-based Mistoria Estate Agents. He predicts that homeowners in the Midlands and northern England will experience the most significant benefits.
Mr. Liyanage explained: “As we step into February, the housing market remains on a cautious trajectory, with property prices showing only slight growth amid ongoing affordability challenges.
“While stability is returning to the market, affordability remains a major concern. Some regions are experiencing stronger buyer demand, but rising borrowing costs continue to limit purchasing power across the board.
“With key policy adjustments on the horizon, future pricing trends will largely depend on shifts in lending conditions over the coming months.”
In January, house prices climbed for the fifth consecutive month, but the annual rate of growth showed signs of slowing, according to Nationwide. The building society’s monthly tracker reported a 0.1% price increase from the previous month, bringing the average home price to £268,213. This was lower than the 0.7% monthly increase recorded in December and the 1.2% rise in November.
On an annual scale, house price growth decelerated to 4.1% in January, down from 4.7% in December. Despite this softening trend, the 4.7% annual rate still marked the strongest growth since October 2022—the month following the former Prime Minister Liz Truss’s mini-budget, which had sent borrowing costs soaring.
Looking at regional variations, Mr. Liyanage identified areas where property values are likely to see stronger gains in the coming weeks. “While affordability remains a challenge for the broader market, I anticipate that property prices in the Midlands, northern England, and parts of Scotland will experience notable growth in February and March. These regions offer a more sustainable balance between wages and housing costs.”
In contrast, the outlook for southern England remains more subdued. “With already high property prices, growth in the South is expected to be modest. Steeper mortgage costs and increasing living expenses are likely to constrain market expansion, making these areas more susceptible to affordability pressures.”
The UK housing market at the start of 2025 remains delicately balanced between short-term growth spurts and ongoing affordability challenges.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
