Over the year to January 2020, house price growth increased to 1.9% from 1.4% in December.
It comes following 12 consecutive months in which annual price growth had been below 1%, according to Robert Gardner, Nationwide’s chief economist.
He said: “Indicators of UK economic activity were fairly volatile for much of 2019, but the underlying pace of growth slowed through the year as a result of weaker global growth and an intensification of Brexit uncertainty.”
He added: “Recent data continue to paint a mixed picture. Economic growth appeared to grind to a halt as 2019 drew to a close, though business surveys point to a pickup at the start of the New Year.”
The house price data comes as the Government revealed there was a slight rise in homeownership rates in 2019. This included a slight increase in the number of homeowners amongst the 25 to 34 age group, which Nationwide said was ‘encouraging’.
Competitive mortgages
Meanwhile, in 2019, mortgage lending was at its highest since 2009. Miles Robinson, head of mortgages at online mortgage broker, Trussle, said this was helped by historically low interest rates fuelling competitive deals and increasing the options available to buyers.
He added: “Following last month’s election people may begin to start having more confidence in the mortgage market. This, coupled with the strong foundation of mortgage lending in 2019, could provide a very solid base for the housing market over the next year.”
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