Nationwide house price index: UK housing market shows signs of rebound

After a difficult 2023, the United Kingdom property market appears to be picking up again, according to latest data from Nationwide.

February’s Nationwide house price index revealed this morning that UK housing prices up 0.7% month-on-month from January, and a solid 1.2% year-on-year compared with February 2022.

A first in over a year

So much so, in fact, that the Nationwide House Price Indices site said that “annual house price growth returns to positive territory for first time in over a year in February.”

This comes after January too showed that housing prices were up 0.7% and that there was further recovery in annual rate of change, with prices down just 0.2% compared with a year ago,” according to the Nationwide House Price Indices site.  

What is the Nationwide house price index?

Released by the Nationwide Building Society, the Nationwide house price index is a monthly indicator of the prices properties are being mortgaged for in the United Kingdom. Because it doesn’t include cash purchases or ‘buy to let’ arrangements, it’s considered a reliable bellwether of the health of the UK housing market.

Not just about houses: data significance for the UK

Economists have often praised the merits of watching a country’s housing market to determine its overall health – more people buying more properties and not defaulting on mortgages is a good sign.

The UK had a sickly 2023, with housing prices down 1.8% over the course of the year, even as the fear of a December recession loomed.

With inflation troubles still potentially lurking, a contentious budget soon to be delivered and rate cuts yet to appear, this is the first solid bit of good news the English economy has had in a while.