House price growth accelerated in February, with the average property value standing 4.5% higher than a year ago, according to an index. A 0.6% month-on-month price increase in February took the average UK property value to £205,846, Nationwide Building Society said.
In January, annual house price growth had stood at 4.3% and house prices had increased by 0.2% month-on-month.
Brian Murphy, Head of Lending at Mortgage Advice Bureau (Holdings) PLC (MAB1) added: “It’s interesting to note that Nationwide have mentioned the amount of cash purchasers in the context of the report, with their figures showing that 35% of transactions are now cash funded, rather than purchased via a mortgage.
“This is potentially a result of those who are older downsizing to lower value properties, therefore having the wherewithal to pay off their mortgage, and is potentially a good ‘health check’ indicator in terms of confidence, as consumers continue to keep their cash in bricks and mortar rather than other asset classes.
“Overall, it’s still too early to tell if the market will blossom in the Spring, but if the figures continue as they have this month it’s possible that we’ll see a flat and calm picture rather than a stormy outlook as we move towards what is normally one of the busier times of the year.”
