UK house prices rise 1.8% - survey

British house prices rose at their fastest rate in four months in February, according to a new survey.

British house prices rose at their fastest rate in four months in February, according to a new survey.

HBOS's Halifax house price survey found house prices rose 1.8 per cent in February, compared with an upwardly revised gain of 1.4 per cent in January. This was the biggest monthly rise since October.

The three-month annual rate of house price inflation held steady at 9.9 per cent for the third month running.

The figures agreed with a survey from rival mortgage lender Nationwide that showed the housing market remained in good health despite three interest rate rises by the Bank of England since August.

READ MORE

Halifax said the cost of an average home stood at £192,233 in February.

Analysts said a shortage of properties was helping to buoy prices but noted there had been some signs higher rates may be starting to weigh. Many economists expect house price inflation to slow in the course of this year.

Official data last week showed mortgage lending rose by its smallest amount in four months in January, while a survey by the Royal Institution of Chartered Surveyors showed enquiries from potential home buyers fell for the first time in nearly two years.