United Kingdom: House prices continue their upward trend
February 28, 2014
According to the Nationwide Building Society (NBS), home prices in the U.K. rose 0.6% over the previous month in February, marking the 14th consecutive rise. The figure was slightly below the 0.7% increase recorded in January; however, it overshot market expectations of a 0.5% increase. On an annual basis, home prices rose 9.4% (January: +8.8% year-on-year). As a result, the average house price was €177,846 (February 2013: €162,638), marking the highest price since April 2008.
The NBS stated that the housing market is gaining momentum due to stronger domestic demand. In addition, "price growth is being supported by the fact that the supply of housing remains constrained, with housing completions still well below their pre-crisis levels."
Author: Dirina Mançellari, Senior Economist