UK house prices up in February - Nationwide

Data from Nationwide covering last month also showed that house prices were up by 0.6 per cent compared with the previous month, bringing the cost of the average home to £205,846.

Both the monthly and annual rise are greater than in January.

However, the building society said it not expect house prices increase dramatically due to uncertainty hanging over the market and projected a 2 per cent rise in UK house prices over the coming year.

“We, along with most other forecasters, expect the UK economy to slow through 2017 as heightened uncertainty weighs on business investment and hiring,” said Robert Gardner, Nationwide’s chief economist.

“Consumer spending, a key engine of growth in recent quarters, is also likely to be impacted by rising inflation in the months ahead as a result of the weaker pound.

“Nevertheless, in our view a small rise in house prices of around 2% is more likely than a decline over the course of 2017, since low borrowing costs and the dearth of homes on the market will continue to support prices.”