Average house prices grew by 0.6% last month according to the latest Nationwide house price index, leading to an “unexpected pickup” in annual price growth.
The average property is now worth £211,756, with annual growth increasing from 2.6% in December to 3.2% in January.
Robert Gardner, chief economist at Nationwide, said the rise was “a little surprising”, particularly given mortgage approvals dropped to 61,000 in December, the lowest level in three years and that household finances remain squeezed.
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