Nationwide: house prices keep rising - for now

Mortgages and Home

Updated on 01 March 2012 | 0 Comments

The building society's latest House Price Index says prices rose again in February, but this may only be temporary with the Stamp Duty exemption deadline looming.

UK house prices rose by 0.6% in February and by 0.9% annually, according to the latest House Prices Index from Nationwide.

However, the building society believes much of this could be attributed to first-time buyers buying homes to beat the Stamp Duty exemption deadline later this month.

Bank of England mortgage approval figures released yesterday seem to back up this view, with the number of approvals rising by 7% in January to reach a two-year high.

And the Council of Mortgage Lenders is forecasting an “unhelpful” jump in home sales before activity slows down again after the Stamp Duty deadline.

Nationwide says the average UK house price is now £162,712, up £484 on the January figure.

Overall, home ownership in the UK continues to decline, with the current economic uncertainty, affordability and a lack of supply major contributing factors. Lenders are also continuing to ask for deposits around the 20% mark, a trend which is expected to continue.

Nationwide figures show that the UK has a lower rate of home ownership than in Hungary, Spain, Greece, Italy, Belgium, Portugal and Ireland.

Earlier this week, property analysts Hometrack said house prices in England and Wales were flat, with only London showing any signs of price rises. Nationwide's index is the only major house price index showing prices rising at present.

More: How to beat Stamp Duty | Act quickly to secure a best buy mortgage!

Use lovemoney.com's innovative new mortgage tool now to find the best mortgage for you online

At lovemoney.com, you can research all the best deals yourself using our online mortgage service, or speak directly to a whole-of-market, fee-free lovemoney.com broker. Call 0800 804 8045 or email mortgages@lovemoney.com for more help.

Comments

Be the first to comment

Do you want to comment on this article? You need to be signed in for this feature

Copyright © lovemoney.com All rights reserved.

 

loveMONEY.com Financial Services Limited is authorised and regulated by the Financial Conduct Authority (FCA) with Firm Reference Number (FRN): 479153.

loveMONEY.com is a company registered in England & Wales (Company Number: 7406028) with its registered address at First Floor Ridgeland House, 15 Carfax, Horsham, West Sussex, RH12 1DY, United Kingdom. loveMONEY.com Limited operates under the trading name of loveMONEY.com Financial Services Limited. We operate as a credit broker for consumer credit and do not lend directly. Our company maintains relationships with various affiliates and lenders, which we may promote within our editorial content in emails and on featured partner pages through affiliate links. Please note, that we may receive commission payments from some of the product and service providers featured on our website. In line with Consumer Duty regulations, we assess our partners to ensure they offer fair value, are transparent, and cater to the needs of all customers, including vulnerable groups. We continuously review our practices to ensure compliance with these standards. While we make every effort to ensure the accuracy and currency of our editorial content, users should independently verify information with their chosen product or service provider. This can be done by reviewing the product landing page information and the terms and conditions associated with the product. If you are uncertain whether a product is suitable, we strongly recommend seeking advice from a regulated independent financial advisor before applying for the products.