UK Feb house-price growth eases

London

UK house-price growth eased in February to the slowest in 17 months amid what Nationwide Building Society said is a "subdued" property market. Values rose 5.7 per cent from a year earlier, down from 6.8 per cent in January, the lender said on Monday. From the previous month, prices fell 0.1 per cent.

Still, there were signs that the housing market may be starting to stabilise, with Bank of England (BOE) data showing mortgage approvals rose for a second month in January. Underpinning demand are record-low borrowing costs, a revamp of the property-tax system that cut costs for most homebuyers, rising employment and the first real wage growth since the financial crisis. "The broader economic backdrop has remained supportive of housing market activity. Mortgage rates remain close to all-time lows and consumer confidence remains buoyant," said Robert Gardner, chief economist at Nationwide. "Nevertheless, the pace of housing-market activity remains fairly subdued."