Construction cranes tower above residential apartment blocks in the London City Island development in London, U.K. (Photographer: Chris Ratcliffe/Bloomberg)

U.K. House Prices Rebound With Near 6% Surge in February

(Bloomberg) -- U.K. house prices surged last month, recording an unprecedented jump at the start of the Spring selling season.

The Halifax index showed a 5.9 percent increase in February, though monthly changes can be volatile, and there was a 3 percent drop in January. The annual increase over the past three months picked up to 2.8 percent.

U.K. House Prices Rebound With Near 6% Surge in February

Halifax Managing Director Russell Galley said the shortage of houses for sale will “certainly be playing a role in supporting prices.” He added that the pace of sales growth means the “overall resilience of the market is still evident.”

Still, the property market is expected to be subdued in 2019 as Brexit uncertainty puts off buyers, and young people face challenges in raising a deposit. Halifax has said it projects growth between 2 percent and 4 percent in 2019, compared with rates more than twice that just a few years ago.

©2019 Bloomberg L.P.