Average UK house price hits new high for month

The average UK house price hit a new record high of £231,068 last month, according to an index.

Property values climbed by 6.9% annually, up from 6.4% in January, in what the Nationwide Building Society House Price Index described as a “surprise” acceleration.

A stamp duty holiday is due to end on March 31, but there have been reports that it could possibly be extended.

Robert Gardner, Nationwide’s chief economist, said: “February saw the annual rate of house price growth rebound to 6.9%, from 6.4% in January. House prices rose by 0.7% month-onmonth, after taking account of seasonal effects, more than reversing the 0.2% monthly decline recorded in January.

“This increase is a surprise. It seemed more likely that annual price growth would soften further ahead of the end of the stamp duty holiday, which prompted many people considering a house move to bring forward their purchase.

“Many people’s housing needs have changed as a direct result of the pandemic, with many opting to move to less densely populated locations or property types, despite the sharp economic slowdown and the uncertain outlook.”

However the EY ITEM Club, predicts house prices could fall by around 3% over 2021.

The rise has surprised property experts.