UK house prices rise more than expected, Nationwide data shows

LONDON, March 2 (Reuters) - British ‌house prices ​rose ​slightly faster than expected last month after a dip at the end of 2025 linked to uncertainty over ‌finance minister Rachel Reeves' budget, mortgage lender Nationwide Building ⁠Society said.

Prices increased by 1.0% in the 12 months to the end of ‌February. Economists polled by ‌Reuters had forecast a median 0.7% rise in annual terms.

House prices in February were 0.3% higher on the month, the ​same pace of increase as in January but a touch stronger than the poll's median forecast for an increase of ⁠0.2%.

"This reinforces the view of a modest recovery after a dip at the end ​of 2025, most likely reflecting uncertainty around potential property tax changes ahead of the budget," Nationwide Chief Economist ​Robert Gardner said.

"Nevertheless, the number of ‌mortgages approved for house purchase remains close to the levels prevailing before the pandemic."

Separate figures due ⁠later on Monday from the Bank of England are expected to show a small increase in the number of mortgages approved by lenders ⁠in January.

Mortgage approvals are a leading indicator for house purchases.

Many investors think the ​BoE will cut its main interest rate to 3.5% this month.

Paul Dales, chief UK economist at Capital Economics, said Monday's data suggested that the improvement ‌in the housing market and the wider economy at the turn of the year has been ‌sustained.

"The growing risk, though, is that an inflationary shock from the ⁠events in the Middle ‌East puts the handbrake ​on housing by limiting interest rate cuts," Dales said.

(Reporting by Suban Abdulla; Editing by William Schomberg and ‌Hugh Lawson)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Syria says no Turkish military build-up planned at airbase struck by Israel
• Analysis-China tax crackdown forces wealthy investors to assess their offshore trusts
• China leaves loan rates steady for 15th consecutive month in August