House prices continued an upward trend during the month of February further indicating this year could end up to be a positive one for UK housing recovery.  Nationwide Building Society released figures which show a slight (0.2%) increase in the average price of a UK house.  The average price has now settled at a little more than 162,600 pounds.  At the same time last year, the average price of a house was 1,500 pounds lower than today’s average.  February marks the fifth month in succession without dipping into negative territory.  Both original loans and remortgages are expected to pick up as the temperature outside increases, according to some analysts.

Robert Gardner, Nationwide economist, commented on the current activity level taking place within the housing market.  He said: "While the economic backdrop remains challenging, there are reasons for cautious optimism that activity will gather momentum in the months ahead. In particular, employment is rising at the fastest pace since the late 1990s which, if maintained, should help support demand for homes.”

Howard Archer, UK economist with IHS Global Insight, commented on the short term prospect for house prices, saying: "The small rise in house prices in February reported by the Nationwide ties in with our view that house prices will be essentially flat over the 2013 – as extended low interest rates and the likely increasing beneficial impact of the Funding for Lending scheme in supporting mortgage lending are countered by still difficult economic conditions.”

Archer added: "However, it is very possible that house prices could eke out a modest gain over 2013 – although it remains hard to see house prices making any decisive move upward in 2013 given the still difficult economic environment."