Recent survey reveals "uptick" in UK house prices

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The UK housing market has shown signs of great strength despite the affordable housing crisis and the Brexit scenarios.

According to the Nationwide House Price Index, the annual rate of house price growth has risen last month by reaching an average of £211,756. Prices grew by 3.2% at the start of this year, as compared to 2.6% at the end of last year. Also, British house prices increased quicker than expected in January by maintaining a steady ascent of 0.6% over the month.

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Robert Gardner, Nationwide’s chief economist, said:

“The acceleration in annual house price growth is a little surprising, given signs of softening in the household sector in recent months. Retail sales were relatively soft over the Christmas period, as were key measures of consumer confidence, as the squeeze on household incomes continued to take its toll.”

“The flow of properties coming on to estate agents’ books has been more of a trickle than a torrent for some time now and the lack of supply is likely to be the key factor providing support to house prices.” Gardner underlined. According to Robert Gardner, the future of the housing market is largely dependent on developments in the wider economy and especially Brexit.

The news came just days after The Bank of England showed that the number of new mortgages approved by UK lenders fell to a near three-year low last December, with reports expecting to rise in interest rates again this year.