UK house prices jumped the most in more than a year in January, according to Nationwide Building Society.
Values rose 1.9% from a year earlier, the most since November 2018, the mortgage lender said on Wednesday. From December, prices increased 0.5%.
The UK housing market is showing signs of life after Boris Johnson’s decisive election victory brought about a lull in Britain’s Brexit drama, clearing the way for the nation to leave the European Union this week. The question is whether the bump can be sustained as the UK moves towards a fresh Brexit deadline at the end of this year.
“Looking ahead, economic developments will remain the key driver of housing market trends and house prices,” said Robert Gardner, Nationwide’s chief economist. “We expect the economy to continue to expand at a modest pace in 2020, with house prices remaining broadly flat over the next 12 months.”
The release is one of the last economic reports before the Bank of England’s interest-rate decision on Thursday. Markets are currently pricing in around a 50% chance of a cut, a move which may boost the housing market further.