Agents have welcomed the headline figures from the latest house price index, but have expressed concern over future directions for the economy.

UK house prices remained broadly steady in February, dipping 0.1% month-on-month to an average of £298,602, according to data released over the weekend by the Halifax. 

“February’s figures highlight the delicate balance within the UK housing market. While there’s been talk of a last minute rush on new mortgages ahead of the changes to stamp duty, inevitably we’ve seen some of the demand that was brought forward start to fade as the April deadline ticks closer, given the time needed to complete a purchase” says Amanda Bryden, head of mortgages at Halifax

“That may help to explain why growth in first-time buyer property prices eased in February, falling to +2.4%, in contrast to home mover price inflation which accelerated, reaching +3.7%,” she adds.

In response to the figures Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “A strong appetite to buy for some is almost matched by others wanting to ensure the increasing availability of stock has been properly appraised and best terms negotiated before proceeding.

“Prices, especially for houses, are holding up well, supported by income growth exceeding inflation but will come under pressure, particularly now it is probably too late to take advantage of the stamp duty concession.

“Employer concerns about increasing national insurance and minimum wage commitments are not helping confidence either.”

And Tom Bill, head of UK residential research at Knight Frank, states: “Despite a rush to complete ahead of the stamp duty increase in April, supply outpaced demand in the first two months of this year, which kept downwards pressure on house prices. That pressure will be sustained if more inflation creeps into the UK economy through measures such as raising employer national insurance contributions. 

“We were also reminded this week of how global politics can act as a brake on the market when Germany announced a defence spending increase, which pushed up borrowing costs in Europe. We expect low single-digit house price growth this year but the outlook is changeable.”

Jason Tebb, president of the OnTheMarket portal, is more optimistic about the year ahead after the Halifax data.

“The housing market continues to shake off external economic concerns demonstrating remarkable resilience, with encouraging levels of activity and interest.The steadiness of house prices suggests that affordability is keeping a lid on values withbuyers unable and unwilling to pay inflated amounts. Sellers keen to take advantage of what is traditionally a busier time of year for the housing market as the sun shines, should bear this in mind and seek advice from an experienced local agent” he says.

“Higher interest rates have dampened activity so last month’s rate cut from the Bank of England will be helpful in giving the market a boost. As we approach the end of the stamp duty concession this month, further cuts could give the market some much-needed impetus later in the year.”