United Kingdom: House prices show steady growth in February
March 21, 2017
House prices in the United Kingdom increased 0.6% in February compared to the previous month in seasonally adjusted terms, up from the 0.2% increase observed in January, according to the Nationwide Building Society (NBS). On an annual basis, house prices rose 4.5% in February, up from 4.3% in January. The average house price in February was GBP 205,846 (February 2016: GBP 196,930).
According to the NBS, house prices are likely to rise this year, propped up by low borrowing costs and a continuing housing shortage. However, in the NBS’s view any price rise is likely to be moderate, with the economy set to slow as uncertainty dampens investment and consumers’ purchasing power is dented by the impact of higher inflation.
Author: Oliver Reynolds, Economist