The Sharpest Gain in House Prices since 2017

House prices in the UK rose in February as demand continued to outpace supply, said our partner Rightmove on Monday.

House prices in the UK rose in February as demand continued to outpace supply, said our partner Rightmove on Monday.

The average asking prices of homes was £251.964 this month, up 3.3% on January and the strongest monthly increase since October 2012. On the year prices were up 6.9% from February, the sharpest gain since November 2007.

In January prices rose 1% on the month and by 6.3% year-on-year. Government schemes such as Help to Buy have helped to boost prices as well as sales and mortgage approvals.

"The market rebound continues," said Miles Shipside, Rightmove’s director and Housing Market Analyst.

"New sellers are now asking over £16,000 more than those who came to market a year ago, a rate of increase not seen since before the credit-crunch took hold in 2008."

Quickly accelerating prices have caused raised concerns that the UK was headed for a housing bubble, prompting the Bank of England to scale back its Funding for Lending Scheme in November.

Housing supply shortages have pushed up prices despite some signs of extra construction, Rightmove added.

"Supply and demand imbalances remain and are getting worse in many markets, as a result of years of under-provision of additional housing stock, especially in the areas where the local economy and employment are strong," Shipside said.