UK house price growth slows in February - Rightmove

(Sharecast News) - UK house price growth slowed in February as the stamp duty deadline loomed, but activity remained "robust", according to data released by Rightmove on Monday. House prices rose 0.5% on the month following a 1.7% increase in January. On the year, house prices were up 1.4% in February, down from 1.8% growth the month before.

The average price of a home stood at £367,994 this month, versus £366,189 in January.

Rightmove said price growth was muted for this time of year as new sellers lowered price expectations due to the looming stamp duty deadline and high competition.

It said the average number of available homes for sale per estate agency branch remained at a 10-year high, reducing sellers' pricing power.

Colleen Babcock, property expert at Rightmove, said: "New sellers are showing some pricing restraint after a fast start to the year, being mindful of both the high level of seller competition, and in England also of the looming stamp duty deadline and extra costs for some buyers. Agents report that some of the steam is coming out of new sellers' price expectations to fit the changing market conditions, which is a sensible reaction to attract buyer interest, and it will also help to support activity levels.

"The upcoming stamp duty deadline in England remains a key talking point, and while some movers may not be affected at all, others will be more severely impacted. We've previously suggested reforms such as regional variations in stamp duty charges to try and address some of the inequities in the current system. With the predicted conveyancing log-jam likely to cause some buyers to miss the deadline and end up paying more tax through no fault of their own, it would seem justifiable for the government to announce a short extension before the end of March."