U.K. house price inflation accelerated to its fastest pace in 10 months in February after easing slightly in the previous month, but the pace was less-than-expected, survey figures from the Nationwide Building Society showed Thursday.

The house price index rose 4.8 percent year-on-year following 4.4 percent increase in January. Economists had forecast a slightly higher figure of 4.9 percent.

The latest increase was the fastest since April last year, when it was 5.2 percent.

Month-on-month, house prices grew 0.3 percent in February, same as in January. Economists were looking for a 0.4 percent rise.

The report also showed that home mortgage loans rose sharply in January to a two-year high of nearly 75,000 from about 71,000 in December.

Nationwide Chief Economist Robert Gardner noted that the sharp increase in loan approvals was likely due to the impending increase in Stamp Duty on second homes which is due to take effect in April 2016.

“This is likely to have brought forward a significant number of purchases, which in turn will probably result in a fall back in approvals during the spring/summer,” the economist said.

“Looking through this volatility we expect the underlying pace of activity to increase in the quarters ahead as improving labor market conditions and low borrowing costs provide ongoing support.”

The material has been provided by InstaForex Company – www.instaforex.com