House prices edged up at a faster rate than expected in February as a looming hike in stamp duty drew closer.
According to Nationwide, average house prices climbed by 0.4%, or by 3.9% on an annual basis, in February to £270,493.
This exceeded Reuters-polled analysts’ expectations for a 0.2% monthly increase and marked an uptick against January’s 0.1% growth.
Nationwide noted April’s increase in stamp duty was set to spark “volatility” in the market as buyers raced to complete deals to avoid higher tax bills.
“This will likely lead to a jump in transactions in March, and a corresponding period of weakness in the following months,” Nationwide economist Robert Gardner said.
First-time buyer activity was said to have recovered further, though overall transactions continued to lag pre-pandemic levels.
Nationwide added April’s stamp duty increase and regulatory uncertainty also appeared to have had a “cooling effect” on the buy-to-let market.