LONDON, March 7 (Reuters) – British home costs jumped unexpectedly in February, probably reflecting enhancements in shopper confidence and the mortgage market, lender Halifax stated on Tuesday, however the general development remained downwards.
Home costs rose 1.1% month-on-month, following a 0.2% rise in January, Halifax stated.
A Reuters ballot of economists had pointed to a 0.3% drop on the month.
Most different gauges of the housing market are but to indicate an identical enchancment after a latest slide in home costs from highs hit following the onset of the COVID-19 pandemic.
Final week one other lender, Nationwide, stated home costs dropped by probably the most in additional than 10 years throughout February.
Mortgage approvals and different housing market exercise indicators have hit multi-year lows within the final couple of months, partly reflecting mortgage market ructions linked to the short-lived premiership of Liz Truss.
Halifax struck a cautious tone concerning the outlook.
“Latest reductions in mortgage charges, bettering shopper confidence, and a seamless resilience within the labour market are arguably serving to to stabilise costs following the falls seen in November and December,” stated Kim Kinnaird, director of mortgages at Halifax.
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“Nonetheless, with the price of a house down on a quarterly foundation, the underlying exercise continues to point a normal downward development.”
Home costs had been 2.1% greater than a 12 months in the past, Halifax stated.
Reporting by Andy Bruce; Modifying by Kate Holton and Paul Sandle
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