Nationwide’s latest house price index shows that property values in February rose by 4.5% year-on-year, a rate of growth higher than the previous month.
February’s index data shows that the average property price in the UK stood at £205,846, a 0.6% increase from January.
Whilst not yet seasonally adjusted, the figure marks an annual increase of 4.5%, higher than the 4.3% recorded a month prior.
On the outlook for the property market in 2017, Robert Gardner, Nationwide’s chief economist emphasised that prices are not forecast to decline and that growth will centre around the 2% over the year.
Whilst commenting on the state of the UK’s economy, Mr Gardner said:
'Recent data suggests that the UK economy has continued to perform relatively strongly. The economy accelerated slightly in Q4, expanding by a healthy 0.7% quarter-on-quarter, and the unemployment rate remained stable at an 11-year low of 4.8%.'
'The outlook is uncertain, but we, along with most other forecasters, expect the UK economy to slow through 2017 as heightened uncertainty weighs on business investment and hiring. 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.'
Earlier this week, Hometrack’s UK Cities House Price Index revealed that properties values in Northern Powerhouse and Midlands Engine cities grew faster than in London in January.