House prices rise at strongest rate in a year

House prices rose at their strongest pace in a year, according to Nationwide. The average home is now worth £257,656, with prices increasing by 0.7% between December and January. This marks a turnaround from the 1.8% fall recorded in 2023. Robert Gardner, Nationwide's chief economist, attributed the increase to cuts in mortgage rates and positive forecasts about interest rates. However, he noted that the outlook remains uncertain. The housing market has been lacklustre recently, but prices have stabilised in many areas. Nationwide also highlighted the challenges faced by first-time buyers, with the typical deposit equating to 105% of their average annual gross income. Gardner said: “There remains considerable variation in affordability across the country, with pressures particularly acute in London, the south of England and East Anglia. Scotland and the north continue to be the most affordable regions, with mortgage payments as a share of take-home pay much closer to their long run average".

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