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UK house prices rose more than expected in January, according to mortgage provider Nationwide, as easing mortgage rates helped to stabilise the property market.
House prices increased 0.7 per cent between December and January, the fastest pace since October, data published on Wednesday showed.
The figure was much higher than the 0.1 per cent increase forecast by economists polled by Reuters and took the average house price to £257,656.
Prices were only 0.2 per cent below the level in January 2023, marking an improvement from the annualised 1.8 per cent contraction in the previous month.
Robert Gardner, Nationwide’s chief economist, said: “There have been some encouraging signs for potential buyers recently with mortgage rates continuing to trend down.”
He added that this follows a shift in view among investors about interest rates, with optimism growing that the Bank of England will cut borrowing costs.
