UK house prices rise for first time in more than a year as mortgage costs drop

Average cost of a home increased to 260,420 in February, up by 1.2% on a year earlier, says Nationwide

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UK house prices increased for the first time on an annual basis in more than a year in February, as a decline in borrowing costs prompted growth in the housing market, according to a survey by Nationwide.

The average price of a home rose to 260,420, up by 0.7% from the month before, and 1.2% higher compared with a year earlier, the research for Britain's biggest building society found. This is the first annual growth since January 2023, and follows a 0.2% year-on-year drop in January.