Nationwide survey reveals the annual rate of house price growth
According to the Nationwide house price index, the annual rate of house price growth has risen in the UK.
Meanwhile, the average price of a home reached £211,756 last month.
Prices grew by 3.2 per cent at the start of this year, as compared to 2.6 per cent at the end of last year. Also, British house prices grew more strongly than expected in January — increased by 0.6 per cent over the month, which is the the same pace as in December.
Robert Gardner, Nationwide’s chief economist, said: “The acceleration in annual house price growth is a little surprising, given signs of softening in the household sector in recent months. Retail sales were relatively soft over the Christmas period, as were key measures of consumer confidence, as the squeeze on household incomes continued to take its toll.”
Gardner also added: “The flow of properties coming on to estate agents’ books has been more of a trickle than a torrent for some time now and the lack of supply is likely to be the key factor providing support to house prices.”
This development comes just days after Bank of England showed that the number of new mortgages approved by UK lenders fell to a near three-year low last in December last year.
According to reports, the BoE is expected to raise interest rates again this year.