House prices in the UK last month rose 9.4% more than in February 2013 – the highest annual growth rate in almost four years.
A rise of 0.6% from January was the fourteenth month of growth in a row.
The figures were obtained through the Nationwide house price index, which measures the cost of mortgages taken with the building society.
Robert Gardner, chief economist of Nationwide, said:
“Demand continues to be supported by record low interest rates, improved credit availability and rising consumer confidence thanks to the healthy gains in employment recorded in recent quarters.”
According to the figures, the average house price in the UK is currently £177,846, which is still 5% below the all time pre-crisis high in 2007.
However, the current growth pattern has led some to suggest that a price bubble is forming, which could result in a market crash.
Mr. Gardner denied these claims. He told the BBC:
“If you look at prices relative to earnings then housing does look relatively expensive by historic standards.
“But if you look at how much it costs to service a typical mortgage, that suggests that housing isn’t overly expensive at this point… because interest rates are at such low levels.”