Prices of UK homes recorded its highest increase in almost two years when it rose 0.6 percent in February, up 0.9 percent over the same period last year, according to the latest Nationwide house price index.
A typical UK home is now priced at £162,712 (S$324,165).
The building society said this is the highest property value increase since the 1.3 percent month-on-month increase posted in April 2010. This indicates that the UK housing sector is now more upbeat, contrary to the forecast of most experts.
Latest figures from the Bank of England show that UK mortgage approvals in January hit a two-year high, indicating that home sales could increase in the coming months.
The number of newly approved mortgages (although not yet lent) in January climbed seven percent to 58,728, a 30 percent increase from January last year and the highest monthly figure since December 2009.
However, analysts said the surge in approvals is due to first-time buyers rushing to beat the stamp duty holiday deadline of 24 March.
Other reports from the Bank of England show that its policy of maintaining low interest rates has saved loan holders billions in interest payments.
Related Stories:
Banks must provide borrowers with mortgage fact sheets
CIMB still offering loans to shoebox buyers
US FHA to hike mortgage premiums