UK house prices rise for a seventh month

London - UK house prices rose for a seventh month in January and a strengthening jobs market may support an acceleration in gains, Nationwide Building Society said.

The average price of a home climbed 0.3% from December to £196 829, the lender said in a statement on Wednesday. The annual rate of growth was 4.4% in January compared with 4.5% the previous month.

Recent reports have pointed to a shortage of homes for sale, which is pushing up values. At the same time, the lowest unemployment rate in a decade, faster-than-inflation wage increases, and low borrowing costs are bolstering consumers’ finances and supporting property demand.

“The risks are skewed towards a modest acceleration in house price growth, at least at the national level,” Nationwide Chief Economist Robert Gardner said in the statement. With the labor market strengthening and “interest rates also likely to stay on hold for longer than previously anticipated, the demand for homes is likely to strengthen,” he said.