UK house prices jump 8.8pc from a year ago

Figures from mortgage lender Nationwide have shown that house prices rose 8.8 per cent in January from a year earlier.

UK house prices continued their forward march this month, increasing 0.7 per cent - their thirteenth monthly increase in a row - but slowing slightly, after December’s 1.4 per cent rise. This was still above expectation, though, which was for a 0.6 per cent increase.

(Nationwide)

Just over a year ago, house prices were falling. But now, 59 per cent of Britons think their houses will be worth more in a year - up from 26 per cent last January.

Prices are still around four per cent below the peak seen in 2007.

(Nationwide)

Nationwide’s chief economist, Robert Gardner, commented on the figures:

The housing market is continuing to gather momentum on the back of further solid gains in employment, record low mortgage rates and rising confidence.