Nationwide: house prices keep rising - for now

The building society's latest House Price Index says prices rose again in February, but this may only be temporary with the Stamp Duty exemption deadline looming.

UK house prices rose by 0.6% in February and by 0.9% annually, according to the latest House Prices Index from Nationwide.

However, the building society believes much of this could be attributed to first-time buyers buying homes to beat the Stamp Duty exemption deadline later this month.

Bank of England mortgage approval figures released yesterday seem to back up this view, with the number of approvals rising by 7% in January to reach a two-year high.

And the Council of Mortgage Lenders is forecasting an “unhelpful” jump in home sales before activity slows down again after the Stamp Duty deadline.

Nationwide says the average UK house price is now £162,712, up £484 on the January figure.

Overall, home ownership in the UK continues to decline, with the current economic uncertainty, affordability and a lack of supply major contributing factors. Lenders are also continuing to ask for deposits around the 20% mark, a trend which is expected to continue.

Nationwide figures show that the UK has a lower rate of home ownership than in Hungary, Spain, Greece, Italy, Belgium, Portugal and Ireland.

Earlier this week, property analysts Hometrack said house prices in England and Wales were flat, with only London showing any signs of price rises. Nationwide's index is the only major house price index showing prices rising at present.

More: How to beat Stamp Duty | Act quickly to secure a best buy mortgage!

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