January sees a 1.9% rise in house prices | moneyfacts.co.uk

Derin Clark

Derin Clark

Online Reporter
Published: 29/01/2020

Homeowners will be pleased to see that house prices have continued to rise during January, although there has only been a modest increase.

Figures released by Nationwide in its latest House Price Index today show that there has been a 1.9% year-on-year increase in house prices during January, with the average price now standing at £215,897. After taking into seasonal factors, the figures also showed that there was a 0.5% month-on-month rise during the month.

Commenting on the figures, Robert Gardner, chief economist at Nationwide, said: “January saw a further modest pick-up in annual UK house price growth to 1.9%, from 1.4% in December. This follows 12 successive months in which annual price growth had been below 1%.

“Indicators of UK economic activity were fairly volatile for much of 2019, but the underlying pace of growth slowed through the year as a result of weaker global growth and an intensification of Brexit uncertainty.

“Recent data continue to paint a mixed picture. Economic growth appeared to grind to a halt as 2019 drew to a close, though business surveys point to a pickup at the start of the new year. Labour market data was surprisingly upbeat in the three months to November, with the economy adding over 200,000 jobs – the largest gain since the end of 2018.

“The underlying pace of housing market activity has remained broadly stable, with the number of mortgages approved for house purchase continuing within the fairly narrow range prevailing over the past two years. Healthy labour market conditions and low borrowing costs appear to be offsetting the drag from the uncertain economic outlook.

“Looking ahead, economic developments will remain the key driver of housing market trends and house prices. Much will continue to depend on how quickly uncertainty about the UK’s future trading relationships lifts, as well as the outlook for global growth. Overall, we expect the economy to continue to expand at a modest pace in 2020, with house prices remaining broadly flat over the next 12 months.”

What are the best mortgage rates?

Along with signs that show the housing market is finally picking up, mortgage rates still remain competitively low, meaning that those looking to move house or purchase their first home can benefit from locking their mortgage into a low mortgage rate.

For those looking to move home, our moving home chart provides the top deals currently available. Meanwhile, first-time buyers can head to our first-time buyer chart to see the top mortgage deals on offer at the moment.

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