UK house price growth speeds up

Why has there been an increase?

UK house prices inclined in February with property prices rising by 4.5 per cent in a year, this is according to the Nationwide.

It said that house prices were up by 0.6 per cent compared with the month before, the cost of an average home now sits at £205,846.

Both the monthly and annual rise are greater than January’s figures, however the Nationwide does not expect house prices to rocket.

It also spoke of the outlook of the market being uncertain.

Its current prediction for houses prices in the UK is for it to rise by two per cent over the course of the year.

Robert Gardner, Nationwide’s chief economist, said: “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 two per cent 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.”