Recent economic findings that were unveiled on Wednesday have shown that British housing prices experienced a higher-than-expected surge in January, indicating a potential easing pressure from elevated interest rates, Invest-Gate reports.

Nationwide reported a 0.7% increase in housing prices in January compared to the previous month, defying economists’ predictions surveyed by Reuters, which anticipated only a 0.1% rise.

Moreover, the positive signs for potential buyers come amidst continued declines in mortgage rates, following a shift in investors’ perspectives on the future trajectory of bank interest rates, as reported by the Middle East newspaper.

Furthermore, January prices were 0.2% lower than the previous year, marking the smallest annual decline since January 2023, contrary to forecasts of a 0.9% drop and a 1.8% decrease in December.

Over the three months ending January, prices rose by 1.1%, the fastest pace since July 2022, shortly before the Bank of England raised interest rates and disruptions in the temporary bond market during Prime Minister Liz Truss’s tenure.

According to economists, economists expect that the Bank of England will maintain the interest rate at 5.25% on Thursday, potentially revising inflation expectations and providing room for interest rate cuts later this year.