UK house prices edged higher in February, according to figures from Nationwide on Friday.
The Nationwide house price index showed a 0.7% increase in seasonally adjusted UK house prices in February from January, the same monthly rise as in January. According to FXStreet, market consensus expected the house price index to edge up just 0.3% last month. House prices had been flat in December.
In February, the average UK house price stood at £260,420, up slightly from £257,656 in January, without seasonal adjustment.
Annually, the house price index rose 1.2% in February, after a 0.2% fall in January. This came in higher than consensus, with markets expecting a 0.7% increase.
‘The decline in borrowing costs around the turn of the year appears to have prompted an uptick in the housing market. Indeed, industry data sources point to a noticeable increase in mortgage applications at the start of the year, while surveyors also reported a rise in new buyer enquiries,’ said Robert Gardner, Nationwide’s chief economist.
‘Nevertheless, near-term prospects remain highly uncertain, in part due to ongoing uncertainty about the future path of interest rates. After falling sharply in late December, swap rates, which underpin fixed rate mortgage pricing, have drifted back up.’
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