Following a 0.7% increase in prices in January, the average house price in the UK is currently £257,656. When mortgage rates decline, there is a small increase.
As to the Nationwide House Price Index, there was a 0.7% increase in home prices from December to January.
This is in contrast to the same lender’s estimates from a month ago that prices would either decline or remain unchanged in 2024.
Reiterating its December statement, it was “unlikely” that prices would return quickly on Wednesday.
All things considered, prices are still 0.2% lower than they were a year ago.
A average UK house now costs £257,656, up from £257,443 a month earlier, following the January price increase.
While mortgage rates continued to decline, there was a small increase.
Early in the month, Nationwide reduced borrowing costs by bringing its lowest mortgage rate down to an eight-month low and far below the base interest rate set by the Bank of England.
Since last week, existing Nationwide mortgage holders have been able to take advantage of the low rate on additional borrowing and switcher packages, both on five-year offers, while new remortgaging clients have been offered a five-year fixed contract at a rate of 3.84%.
According to financial information provider Moneyfacts, the average mortgage rate on a five-year fixed agreement is 5.18%, while the average rate on a two-year term is 5.56%.
