Annual house price growth remains 'sluggish' at 0.4%: Nationwide

Although this is a slight improvement from the 0.1% growth recorded in January, monthly house prices saw a marginal fall in February after taking account of seasonal factors.

Robert Gardner, Nationwide's Chief Economist, said: “Indicators of housing market activity, such as the number of property transactions and the number of mortgages approved for house purchase, have remained broadly stable in recent months, but survey data suggests that sentiment has softened.

“Measures of consumer confidence weakened around the turn of the year and surveyors reported a further fall in new buyer enquiries over the same period."

Lucy Pendleton, founder and director of James Pendleton estate agents, commented: “It’s a pretty unremarkable start to the year but, assuming there’s no delay to Article 50, this is going to be the mood music until we get through to April.

“February can be a mixed bag but it’s generally a time of year when the market starts to really pick up in terms of post-Christmas activity. There are extenuating circumstances now of course that are affecting that typical pattern, and delivering us the first quarterly fall since the middle of 2018.

“The market is falling in real terms but in the more expensive parts of the country, particularly London, it’s going to take a more significant retreat in prices to pull first-time buyers to the table in significantly greater numbers.”

Jonathan Samuels, CEO of Octane Capital, said: “The annual rate of growth may have risen in February but the UK property market remains firmly on its knees.

“To say sentiment has softened is somewhat generous. Shattered is closer to the mark. March could be the month the property market finally succumbs to madness."

Nicholas Finn, executive director of Garrington Property Finders, added: "January’s horror show proved mercifully brief, and house price growth returned to characteristically anaemic form in February.

“But it says much about the fragility of confidence that a shift from sliding to sluggish growth is seen as progress.

“If there’s one common factor in Britain’s fractured property market, it’s that these are anxious times for sellers, and many buyers will want the reassurance of a low price in order to proceed.

“That dynamic is allowing a steady stream of strategic buyers to pounce on buying opportunities that may not be around once the market normalises.”