House prices rise by 0.6% in February - Mortgages - News - Moneyfacts

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

House prices rise by 0.6% in February

House prices rise by 0.6% in February

Category: Mortgages

Updated: 01/03/2012
First Published: 01/03/2012

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

House prices in the UK edged up by 0.6% in February, against a backdrop of increased mortgage lending.

Prices increased last month and have risen by 0.9% in the last year, taking the average price of a home to £162,712, figures from Nationwide show.

Evidence that house prices picked up a little in February follows a series of data releases suggesting that economic conditions may not be quite as weak as feared after the UK economy contracted in the final quarter of 2011.

Surveys of activity in the manufacturing and service sectors point to a rebound in January, while consumer confidence and retail spending were both stronger than expected during the month.

Housing transactions have also improved markedly, while mortgage approvals have also risen, although there is some doubt as to whether the trend will continue after the end of the stamp duty holiday.

"However, it remains to be seen whether this trend will be sustained," said Robert Gardner, chief economist of Nationwide.

"Given the still challenging economic backdrop this increase in housing market activity may be the result of a temporary rise in first time buyers entering the market to take advantage of the stamp duty holiday before it expires in March.

"If so, this may continue to support activity and prices in the near term before cooling over summer."

Up until 24 March, first time buyers are exempt from paying a 1% levy on house purchases worth up to £250,000.

Separate figures from the Building Societies Association also support the theory the first time buyers are inflating mortgage activity.

Find the best mortgage rate - Compare best selling mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

2016: the best year for remortgaging since 2009

Remortgaging has certainly seen a surge in activity of late, helped in no small part by the dramatic drop in mortgage rates over the last year, so much so that 2016 as a whole proved to be the best year for the sector since 2009.

Homeowners underestimate remortgaging savings

Remortgaging has been enjoying a surge in popularity in recent months, and considering how much you could save, it’s a no-brainer! Unfortunately, many fail to realise the extent of potential savings, which could mean too few make the switch.

Mortgage rates at fresh lows – but it may not last

Average fixed mortgage rates continued to fall this month, however much of this could be a technical adjustment rather than an indication of ongoing rate cuts – which means it may be worth switching to a new fixed rate deal sooner rather than later.
 
Close