Nationwide : UK house prices continues to rise in February

According to the Nationwide‘s House Price Index, UK annual house prices increased by 4.5% year-on-year, rose by 0.6% month-on-month in February.More households in England owned outright than with a mortgage.

Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said:

“The annual rate of house price growth was little changed in February at 4.5%, only slightly higher than the 4.3%
recorded in January. House prices increased by 0.6% over the month, after taking account of seasonal factors.

“Recent data suggests that the UK economy has continued to perform relatively strongly. The economy accelerated slightly in Q4, expanding by a healthy 0.7% quarter-on-quarter, and the unemployment rate remained stable at an 11-year low of 4.8%.

“The outlook is uncertain, but we, along with most other forecasters, expect the UK economy to slow through 2017 as
heightened uncertainty weighs on business investment and hiring. Consumer spending, a key engine of growth in recent quarters, is also likely to be impacted by rising inflation in the months ahead as a result of the weaker pound.

“Nevertheless, in our view a small rise in house prices of around 2% is more likely than a decline over the course of
2017, since low borrowing costs and the dearth of homes on the market will continue to support prices.

Source: Nationwide

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