House prices in the United Kingdom increased by 0.2 per cent month-on-month in February, to 162,638 pounds, although they were flat when compared to a year ago, the latest survey data from mortgage lender Nationwide showed on Friday.

The consensus forecast had been for a 0.1% month-on-month drop.

Unsurprisingly, London house prices registered the largest gains in 2012 despite the fact that 11 of 13 regions saw price declines last year.

Within England, the North/South divide in property prices continued to widen, Nationwide said.

Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, highlighted the fact that home values have in fact remained broadly stable over the last two years. Likewise, he sees "tentative signs of a pick-up in recent months."

In particular, he said that the central bank´s Funding for Lending Scheme has achieved some success in bringing down mortgage rates, "with encouraging signs of an improvement in credit availability."

Of interest as an example of the currently very adverse economic environment, and notwithstanding the above, Nationwide comments on how tenure patterns by age have shifted over the past decade, with a marked decline in home ownership rates amongst the younger age groups.

Amongst 25-34 year-olds, the category which traditionally contains most first time buyers, the proportion of households renting has increased from 40% to 57% between 2002 and 2012.

AB

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