Average house prices ended last year at £205,898, according to the Nationwide. The figure represented annual house price inflation of 4.4%, the same as the previous year. London’s house price inflation of 3.7% over last year was lower than the UK average – for the first time since 2008, the year that the last housing collapse took hold.
Nationwide chief economist Robert Gardner said that he expects to see house prices gain around 2% this year, with low interest rates expecting to underpin demand while a shortage of supply will continue to provide support for house prices.
He said that East Anglia was the top performing region in the UK, with average prices up 10.1% last year on an annual basis. The north was the weakest region, with almost no change in house prices.