UK House Price Rise For First Time In More Than A Year: Nationwide
February 29 2024 - 11:13PM
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UK house prices increased for the first time in more than a year
in February as the decline in borrowing costs helped to bring an
upturn in the housing market, the Nationwide Building Society said
on Friday.
House prices posted an annual increase of 1.2 percent, in
contrast to the 0.2 percent decrease in January.
Prices were forecast to climb only by 0.3 percent. The increase
marked the first time upturn since January 2023.
Month-on-month, house prices rose 0.7 percent, the same rate as
seen in January.
"House prices are now around 3% below the all-time highs
recorded in the summer of 2022, after taking account of seasonal
effects," Nationwide's Chief Economist Robert Gardner said.
Gardner said industry data sources suggested a noticeable
increase in mortgage applications, while surveyors reported a rise
in new buyer enquiries.
Nonetheless, the economist said the near-term prospects remain
highly uncertain partly due to ongoing uncertainty about the future
path of interest rates. "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," said Gardner.
Further, the economist observed that the squeeze on household
budgets is easing with wage growth outstripping inflation by a
healthy margin.
However, it will take time to make up for the ground lost over
the past few years as consumer confidence remains fragile.
Data released on the Thursday also signaled an improvement in
the property market. Mortgage approvals for house purchases rose to
55,200 in January from 51,500 in December.
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