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UK house prices continued rising in January although at a slower pace than expected, according to mortgage lender Nationwide.
The average house price rose to £268,213, up 0.1 per cent from December and 4.1 per cent from January last year — less than the annual rise of 4.7 per cent recorded in December.
Economists polled by Reuters had expected a monthly rise of 0.3 per cent and an annual rise of 4.3 per cent.
Robert Gardner, chief economist at Nationwide, said the market had shown resilience, “despite ongoing affordability pressures”.
“While there has been a modest improvement over the last year, affordability remains stretched by historic standards,” he said.
Separate data from the Bank of England showed the pace of mortgage approvals returning to growth in December after falling in November.
Mortgage interest rates also rose, with the average rate for a two-year fixed mortgage with a 60 per cent loan-to-value ratio rising to 4.47 per cent, up from 4.39 per cent in November and 4.21 per cent in October. However, the average rate was well below its 6.22 per cent peak in the summer of 2023.
