February sees first annual house price rise in over a year

Nationwide’s House Price Index has shown that UK house prices rose year-on-year for the first time since January 2023.
The report showed that house prices had risen by 1.2% compared to February 2022, an annual increase not seen for over a year.
Prices also rose 0.7% from last month, meaning that the average house price in the UK now stands at £260,420. However, prices still remain around 3% below the peak seen over the summer of 2022.
The chief economist for Nationwide, Robert Gardner, stated that the recent reduction in mortgage rates had helped to drive more market activity, but warned that uncertainty still remained over the future of interest rates.
He said: “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.”
“Borrowing costs remain well below the highs recorded last summer but, if the recent upward trend is sustained, it threatens to restrain the pace of any housing market recovery.”
“While the squeeze on household budgets is easing, with wage growth now outstripping inflation by a healthy margin, it will take time to make up for the ground lost over the past few years, especially given consumer confidence remains fragile.”
Tom Brown, managing director of real estate at Ingenious, said: “The UK property sector continues to demonstrate its resilience and popularity in the face of high inflation and higher borrowing rates. Nationally, there remains a significant shortage of housing inventory across most locations and price points. Consequently, any slow-down in sales volumes from homeowners is likely to be offset by increased demand from renters and investors.”
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