January saw house prices increase at the fastest rate in 14 months rising by 1.9%, the latest figures from Nationwide have revealed.
On a monthly basis house prices increased by 0.5% in January alone with the average home now valued at £215,897.
Robert Gardner, Nationwide’s chief economist, said: “Looking ahead, economic developments will remain the key driver of housing market trends and house prices.
“Much will continue to depend on how quickly uncertainty about the UK’s future trading relationships lifts, as well as the outlook for global growth.
“Overall, we expect the economy to continue to expand at a modest pace in 2020, with house prices remaining broadly flat over the next 12 months.”
Josef Wasinski, co-founder of Wayhome, added: “Although this rise may be welcomed by those looking to sell their home, it does nothing to ease the frustrations of those reluctant renters hoping to buy their first home.
“For many, there is little choice but to remain part of ‘generation rent’ amid an increasing struggle to raise the typical standard 10 percent deposit in order to get on the ladder.
“The truth is that we need real innovation in the property market to level the playing field and help those hardworking, credit-worthy people who want to own their own home. The Government needs to remember its manifesto promises and provide support to those aiming to make the next step.”