UK house prices climb 0.2% in February

UK house prices rose by 0.2 per cent in February taking the average value of a house from £162,245 in January to £162,638.

Today’s figures from the Nationwide House Price Index for February show house prices are at their highest levels since November 2012 when the average value was £163,853.

Nationwide’s chief economist Robert Gardner says this second consecutive month of essentially zero growth is further evidence of a broader stability returning to the housing market.

He says: “While activity in the housing market remains subdued by historic standards, there have been tentative signs of a pick up in recent months. The Funding for Lending scheme has achieved some success in bringing down mortgage rates, with encouraging signs of an improvement in credit availability

“However, progress is likely to be gradual, as stubbornly high inflation will continue to exert pressure on household budgets. Moreover, buyer confidence is likely to remain fragile until there are signs that the wider economic recovery is firmly entrenched.”