“But, with the U. K. economic recovery expected to remain sluggish well into 2012, house price growth is likely to remain soft, with prices moving sideways or drifting modestly lower over the next 12 months”, Robert Gardner, the Nationwide Chief Economist, said in a report, while raising major concerns over the rapidly increasing housing prices in the United Kingdom.

In addition, the expert has notified that the housing prices have followed a surprisingly resilient attitude, during the recent month’s inspite of deterioration in the economic outlook. Today, in a latest report, the bank of England has clearly depicted a significant hike in the mortgage approvals, across the United Kingdom as compared to the economists forecast of October.

The existing market scenario has inspired lenders to approve 52,743 loans in order to offer feasible environment for home purchase. The figure was a huge difference as compared to 51,193 for the previous month.

The monthly Nationwide House Price Index has suggested that presently, the price of a normal home is believed to cost estimated £165,798, roughly 1.6% higher as compared to the prices of past year. However, the annual price rise can be considered as an improvement on 0.8 % from October.

The figures are believed to have a strong influence from the government’s announcement, suggesting underwriting mortgages, especially for first-time buyers in order to help stimulate and support the housing market.

While commenting on the existing scenario, the Director of the home buying agency Home Fusion, Nicholas Ayre, said that the recently released data has depicted the market scenario authentically. Simultaneously, data suggested by the Land Registry has also reflected the housing price deviation, across the United Kingdom. The values are around 2.3% down as compared to corresponding period of last years, added the survey report.