DCLG: House prices rise 0.3% in February

Official data from the Department for Communities and Local Government (DCLG) today revealed UK house prices rose by 0.3% in February compared with January, with the average UK home costing £204,164.

On an annual basis, house prices rose 0.7% - beating expectations for a 0.1% rise.

The data from the DCLG is based on mortgage completions figures collected by the Council of Mortgage Lenders (CML).

In other news today, the Royal Institution of Chartered Surveyors (Rics) revealed the UK housing market remained weak last month.

The Institution’s March monthly survey revealed sales and prices were flat, while interest from prospective buyers was waning.

Despite the positive figures from the DCLG, many experts are forecasting a modest drop of 2% in house prices for the 2011 year, particularly in light of the Government’s spending cuts and the ongoing lack of mortgage availability.

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