UK house prices rose more than expected in February, according to Nationwide Building Society, a sign that market strength has extended into this year. Prices gained 0.6% from January, a third month of gains. Economists predicted an increase of 0.2%. From a year earlier, prices climbed 4.5% to an average of £205,846 ($358,632).

Britain’s housing market and the wider economy have been surprisingly resilient since the vote to leave the European Union last June. Still, the Bank of England sees cooler expansion this year as consumer spending moderates.

Nationwide does not provide a regional breakdown, though other reports suggest the market is weaker in London, with more home sellers having to cut asking prices. London home prices have surged about 86% since 2009, meaning it now costs buyers 14.2 times their annual gross salary to purchase a property, more than double the UK average.

Nationwide predicts a modest 2% increase in average UK house prices this year, citing low borrowing costs and a dearth of homes for sale. The shortage of homes has underpinned the house-price boom of the last two decades.

“Recent data suggests that the UK economy has continued to perform relatively strongly,” says Nationwide chief economist Robert Gardner. “The outlook is uncertain, but we, along with most other forecasters, expect the UK economy to slow through 2017.” — Bloomberg LP

This article appeared in The Edge Property Pullout, Issue 769 (Mar 6, 2017) of The Edge Singapore.