The latest House Price Index shows that annual house price growth was 4.5% in February, slightly up from the 4.3% recorded in January.
Residential property prices rose slightly last month after hitting a 14-month low in January, fresh figures show.
According to Nationwide’s latest House Price Index, annual property price growth was 4.5% in February, marginally higher than the 4.3% recorded in January.
On a monthly basis home prices increased by 0.6% to £205,846, up from £205,240 in January.
Robert Gardner, Nationwide’s chief economist, said: “The outlook is uncertain, but we, along with most other forecasters, expect the UK economy to slow through 2017 as heightened uncertainty weighs on business investment and hiring.
“Consumer spending, a key engine of growth in recent quarters, is also likely to be impacted by rising inflation in the months ahead as a result of the weaker pound.
“Nevertheless, in our view a small rise in house prices of around 2% is more likely than a decline over the course of 2017, since low borrowing costs and the dearth of homes on the market will continue to support prices.”
Although the house price data from Nationwide, which is based on mortgage borrowing, provides an important insight into what’s happening in relation to property values, it is worth noting that the number of cash buyers is increasing, with the share of cash transactions now accounting for around 35%.
Various property analysts expect housing market activity and prices to come under growing pressure over the coming months despite February’s rise in property prices.
Jonathan Hopper, managing director of Garrington Property Finders, commented: “It is fast becoming less a battle of wills than a battle of nerves – the uneasy standoff between cautious buyers and sellers who know they have less competition than usual.”