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House prices remain flat

House prices remain flat

Category: Mortgages

Updated: 01/03/2013
First Published: 01/03/2013

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 It is now over 6 months old so the content may be out of date.

The price of the average home in the UK rose by 0.2% during February, according to the latest Nationwide Building Society House Price Index.

Property values have remained noticeably subdued throughout the past twelve months, apart from a spike during May last year, when the average price stood at £166,022.

The number of people renting rather than purchasing a home has continued to rise, particularly amongst the younger generations who find themselves priced out of the market by strict lending criteria and large deposits.

Figures showed that the percentage of people aged between 25 and 34 who currently rent a home has grown 40% in 2002 to 57% today.

Some signs of improvement have emerged lately in the housing and mortgage market, as the effects of the Government's £80-billion Funding for Lending Scheme become apparent. Mortgage rates have dropped dramatically, whilst a number of highly competitive deals have been launched by lenders.

Research by found that the average five-year fixed mortgage rate has fallen to 4.14% from 6.00% in February 2010, marking a 1.86% reduction.

Despite the upturn in terms of mortgage rates and availability, many people are delaying buying a property as a result of continued uncertainty in the eurozone and UK economy.

Robert Gardner, chief economist at Nationwide Building Society, said: "Buyer confidence is likely to remain fragile until there are signs that the wider economic recovery is firmly entrenched."

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