United Kingdom: House prices rise to highest level in nearly six years
January 31, 2014
According to the Nationwide Building Society (NBS), home prices in the U.K. rose 0.7% over the previous month in January. The increase overshot market expectations of a 0.6% increase, but came in below the 1.4% rise recorded in November. On an annual basis, home prices rose 8.8% (December: +8.4% year-on-year). As a result, the average house price was €176,491 (January 2013: €162,245), marking the highest price since April 2008.
The NBS stated that the housing market is gaining momentum mainly as a result of, "further solid gains in employment, record low mortgage rates and rising confidence." However, NBS also acknowledged that there are signs that activity is gradually returning to more normal levels. This may be due to the closure of the Funding for Lending Scheme (FLS) on 29 November 2013.
Author: Dirina Mançellari, Senior Economist