Recent figures from Nationwide reveal that property price growth in the UK is at a 14-month high.
According to the building society’s figures, house prices across the UK recorded average increase of 1.9 per cent in January.
The average home is currently valued at £215,897.
However, Nationwide predicts that property prices are likely to be flat for much of 2020. “Looking ahead, economic developments will remain the key driver of housing market trends and house prices,” said Robert Gardner, the chief economist of Nationwide.
“Much will continue to depend on how quickly uncertainty about the UK’s future trading relationships lifts, as well as the outlook for global growth. Overall, we expect the economy to continue to expand at a modest pace in 2020, with house prices remaining broadly flat over the next 12 months.”
Meanwhile, separate data released by the property website Zoopla shows annual house price growth in the UK’s 20 biggest cities hit a two-year high of 3.9 per cent last month.
The fastest growth was seen in Edinburgh where there was a 6.1 per cent gain while London saw 1.9 per cent growth, the fastest since 2017.
Demand for properties across the 20 cities surged by 26 per cent, which far exceeds the traditional new year boost.
“Whilst the first few weeks of the year always see a return of home buyers to the housing market, demand for housing at the start of 2020 is 26 per cent higher than over the last two years,” said Zoopla research and insight director Richard Donnell.
“This is partially due to fading political uncertainty; households who were holding off moving are now starting to return to the market and this momentum has been supported by low mortgage rates.
“The cities with more affordable house prices have seen the greatest increase in buyer demand as house hunters continue to focus on value for money this year.”
Article published 3rd February 2020