Just like that, February was over. While it can feel like a quiet month squashed between the New Year rush and the spring peak, February 2025 had a micro-climate all of its own. As well as home movers pushing to complete before the stamp duty deadline on 31st March, we were noting the buyers of the future.
It’s a pleasure to see increasing numbers of potential purchasers register with us – a trend that was reflected by Rightmove. Its February house price index revealed an 8% increase in the number of active buyers. Their enthusiasm was met by a 13% increase in the number of new sellers coming to market.
Annual house price increase
February also saw a number of important, long-term property studies come to fruition. The first was the latest house prices index from the Office for National Statistics (ONS). Widely regarded as the most accurate barometer of values, it found UK house prices had increased annually by a provisional figure of 4.6%.
£300,000 possible?
The average UK house price of £268,000 is £12,000 higher than December 2023. Interestingly, West One Loans forecast for the average house price to break the £300,000 barrier in 2025. This is based on an increasing number of buyers, an improved supply of new homes and positive price predictions.
Another annual report released in February came from Paragon Bank, concerning rental yields. Landlords at the end of December 2024 were enjoying yields at an average of 6.93%. This was the highest level since February 2011.
Regional trends were identified. The highest yields (8.09%) were found in Wales, followed by the North West (7.84%) and the South West (7.75%). Looking at property types, it was houses in multiple occupation (HMOs) that generated the highest yields (8.40%), followed by freehold blocks (7.28%) and flats (6.09%).
Perhaps it was attractive yields that put landlords in a good mood when they were polled by Pegasus Insight. The results of its Q4 2024 Landlord Trends report showed rising confidence. Of those questioned, 37% said they felt ‘good’ or ‘very good’ about future prospects.
Also helping steady the investment ship is a better selection of buy-to-let mortgages. Product analysis by Moneyfactscompare.co.uk found the most 2- and 5-year fixed rate deals available to landlords since 2011. More choice is available for loan-to-value amounts of between 60% and 80%.
Rents cool across the UK
A monthly round up wouldn’t be complete without the rental values. The UK’s average monthly rent, according to HomeLet, is £1,271. This is a 1% decrease in the last four-week monitoring period. Rents, however, continue to rise in Northern Ireland and the East of England.
A different kind of report also caught our eye in February. When submitting photos of plants for identification, Environet found the general public suspected many common garden plants were Japanese knotweed, including ivy and honeysuckle. The report highlights the importance of instructing a professional to identify invasive species.
New EPC changes announced
February also brought extra energy performance certificate (EPCs) in domestic settings. In England and Wales, the push towards a mandatory C rating in private rentals will include a revised EPC system with new metrics. Landlords can expect this in the second half of 2026. The investment cap will also increase from £10,000 per property to £15,000.
The Scottish Government announced the validity period of EPCs will reduce from 10 to 5 years, and the certificate will switch to a digital format. New categories will also be added - heating system and heat retention – with the latter becoming the EPC’s headline figure.
If you would like to know more about your local property market, please get in touch.
Subscribe to receive the latest property market information to your inbox, full of market knowledge and tips for your home.
You may unsubscribe at any time. See our Privacy Policy.
