Halifax, one of the largest UK mortgage lenders, released mortgage lending data for February and remarked that the results reveal a better than expected rise in house prices.  In response to the data, the outlook for the near future for house prices received an optimistic expectation.  House prices for the last three months to February increased by 1.9% over the same time period from last year.  For a quarterly measurement comparison this marked the third successive increase in the average house price.  February data revealed a 0.5% increase over the previous month which put the average house price at £163,600.

The increase in house prices is being credited by experts to the Funding for Lending scheme.

Demand is growing for house purchases as lenders are offering better interest rates and better incentive with mortgage deals.  Remortgage offers have also been cheaper for borrowers and demand, while slower than that of mortgages for purchases, has also been increasing.

Martin Ellis, Halifax economist, remarked, “House sales also continue on a modest upward trend. This increase in both prices and activity in recent months is consistent with evidence of some improvement in market conditions.

“The more than half-a-million increase in the number of people in employment over the past year is likely to have been a factor supporting housing demand.”

Rival lender, Nationwide, also announced an increase in the average UK house price with their survey report recording a 0.2% increase for February.  This marked the fifth successive month without a decrease.  The quarterly data revealed an annual comparison increase of 0.6%.