House prices returned to growth for the first time in more than a year, according to a lender, as mortgage approvals hit their highest level in more than a year.

Property values rose by 1.2pc in the 12 months to February, the Nationwide house price index showed.

Prices increased by 0.7pc between January and February, making the average home worth £260,420.

It comes as figures published by the Bank of England showed that mortgage approvals hit their highest in almost 18 months in January as lower borrowing costs tempted more buyers into the housing market.

More than 55,000 loans were approved for home purchase in the month, according to the Bank of England, the highest since October 2022, just before sales went into freefall amid financial turmoil in the wake of Liz Truss’s mini-Budget.

At the lowest point, approvals dropped to 39,382 in January 2023.

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