House prices edging higher in February

The average price of properties for sale in the UK edged slightly higher last month (February), after homeowners showed a slight increase in the confidence they have in the market, and the number buying as a result was on the up.

Nationwide has reported that the average price of a piece of UK property for the month edged up by 0.6 per cent, after a decrease in values in January overall. One possible reason for the increase in house value could be the fact that a higher number of first-time buyers are attempting to purchase property in bids to beat the end of stamp duty holiday coming at the end of March.

In January, house prices had dropped by 0.3 per cent compared to December.

This monthly increase is not the only good news however, as it was also reported that the average price of a property in the UK in February was 0.9 per cent higher than in the same month in 2011.

Robert Gardner, Nationwide's chief economist, said: "Evidence that house prices picked up a little in February follows a series of data releases suggesting that economic conditions may not be quite as weak as feared after the UK economy contracted in the final quarter of 2011.  Surveys of activity in the manufacturing and service sectors point to a rebound in January, while consumer confidence and retail spending were both stronger than expected during the month."

He also went on to say that the number of transactions were driving up the average price of a house in the UK at the moment, with January having seen a 23 per cent rise in the number of people who were undertaking the purchase of a house when compared to the year prior.

The number of mortgage approvals were also on the increase, with 36 per cent more in January than in 2011.