The latest numbers on UK property prices released by Nationwide bank today show that the market has continued to shake off previous negative price trends to see further positive growth, both month on month, and annually.
With price growth having previously seen a downturn due to the Brexit vote and snap election causing market uncertainty and reducing buyer demand, recent indices from Halifax, Nationwide and the Land Registry all show signs that the market is beginning to regain stability.
Nationwide’s latest data shows that prices increased 2.5% annually, with a more subdued rate of 0.2% on a monthly basis. An accelerated rate of growth when compared to previous months but one that Rob Gardner from Nationwide says could still be better.
“Annual house price growth remains within the 2-4% range that has been prevailing since March. Low mortgage rates and healthy rates of employment growth are providing some support for demand, but this is being partly offset by pressure on household incomes, which appears to be weighing on confidence.”
With an increase in interest rates almost certain this week, some may be worried that these further changes to market conditions could further slow, or even reverse this recent property price growth, but as eMoov CEO and property expert Russell Quirk explains, this is very unlikely.
Despite a number of significant, testing events the UK property market and the economy as a whole have shown an air of defiance and both outperformed wider negative predictions.
With a slow but consistent recovery from such detrimental proceedings as the EU referendum and the shambolic snap election, it is unlikely that any marginal increase in interest rates that may come this week will stifle this growth.
Not only will any rates rise be financially palatable for UK homeowners, a swelling population both native and from abroad, coupled with a severe lack of building stock being built, will see prices remain inflated to do the imbalance between supply and demand.Russell Quirk