Nationwide Reports Surpassing Expectations in UK House Price Increase

British house prices defied expectations by increasing 0.4% in February, surpassing the projected 0.2% rise indicated in a Reuters poll. This surge in prices, driven by buyers seeking to take advantage of an expiring tax break, reflects a broader trend of heightened demand in the housing market. Nationwide's chief economist, Robert Gardner, anticipates a spike in transactions in March as buyers expedite purchases to benefit from the current tax incentives. The housing market is expected to experience fluctuations in the coming months due to these imminent changes. Additionally, a Reuters poll suggests a 3.5% increase in home prices for the year, with a further rise to 4.0% in 2026, influenced by potential interest rate reductions by the Bank of England. Despite a slight slowdown from January, house prices have risen by 3.9% compared to February last year.