Nationwide reports a steady rise for UK house prices

Posted on Monday, March 6, 2017

The latest data from Nationwide has shown that during February, the average price of a home in the UK increased slightly to £205,846 - representing a rise of 0.6%.

The report also revealed that annual house price growth edged up to 4.5% and that more households in England own outright than with a mortgage.

Robert Gardner, Nationwide's Chief Economist, had this to say: “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.”

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