House prices rose by 0.4% in February, according to Nationwide. This means that annual house price growth slowed to 3.9%, a deceleration from January and the strong end to 2024.

Completed transactions in January outpaced the 2017-19 average by 2%, as buyers raced to beat the Stamp Duty Land Tax (SDLT) deadline. This represents a significant jump compared to last year, 21% higher than last January according to HMRC. First Time Buyers (FTBs) in higher value markets are particularly incentivised to complete before the lowering of SDLT thresholds on 1st April. FTBs rose to 31% of new mortgages in December as a result – the highest proportion of the market they’ve held since the early 2000s. 

There are signs of slowing demand on the horizon, as the chance of completing before the SDLT change diminishes. New enquiries from prospective buyers have suffered as a result, with January seeing the first reports of falling levels of new buyer enquiries since last summer, according the latest RICS survey. Sales agreed also dipped slightly in February, according to TwentyCI, but remained above the 2017-19 average for the month. 

Supply continued to rise, with the majority of surveyors reporting rising new instructions in January. This opened up the gap between supply and demand to its widest since the summer of 2023. The fall in demand compared to supply may result in lower price growth.