UK house prices rose 2.1% in April, industry reacts.
It is the largest monthly increase since 2004.
The figures, taken from the bank’s home equity loans in the post-survey approval stage, showed annual price growth of 7.1 percent in April, an increase in itself of 5.7 percent in March. Nationwide predicts that annual growth will reach double digits in June if prices remain flat for the next two months. The data also reported a new record average price of £ 238,831, an increase of £ 15,916 over the past year.
Robert Gardner, the chief economist at Nationwide, said the extension of the stamp duty holiday was a factor in the growth.
He added: “However, our research suggests that while the stamp duty holiday is affecting the timing of housing transactions, for most people it is not the key motivating factor that prompts them to move in the first place. For example, among homeowners surveyed in late April 1 who were moving house or considering moving, three-quarters said this would have been the case even if the stamp duty holiday had not been extended.”
Gardner said housing market activity is likely to remain bullish over the next half-year due to the extension of the stamp duty holiday.
The outlook, he maintained, is still uncertain. Gardner said: “If unemployment rises dramatically towards the end of the year, as most analysts expect, there is scope for activity to slow down, perhaps dramatically. “However, changes in housing preferences may continue to support activity, even as labor market conditions weaken.”
“The market is in a good moment”
There was a widespread industry reaction to the news. Marc von Grundherr, Director of Benham and Reeves, said: “Very positive signs to see the market go through the original stamp duty deadline and the supposed cliff edge that awaited. Of course, this was always going to be the case with the granting of an extension, but now we are in a very strong position and it is unlikely that it will be overthrown when the new staggered terms expire.”
Anna Clare Harper, CEO of SPI Capital, said the extension of the stamp duty holiday was not the only factor at play. He added: “Beyond the transaction tax, there are other important drivers of the burgeoning housing market, in an otherwise challenging economic environment. First, in the context of long-term increases in living standards, many people wanted and needed to move house, encouraged to improve their environment through repeated closings. Second, it is cheap to borrow, due to very low-interest rates, which give buyers a “discount.” And third, there is a ‘flight to safety: in uncertain times, people want to put their money in a stable asset with low volatility.”
HICH LTD has revolutionized the property survey market since day one! Are you looking for a roof, structural, or bespoke survey? Request it here!
Follow us on our social networks to keep up to date with the most relevant property market news, tips for being a responsible homeowner, and much more!
Twitter: @HichLTD
Facebook: HICH-LTD
We are recruiting Freelance Surveyors and Building Inspectors to carry out Roof & Property Condition Inspections. You will be required to inspect and assess the full external and internal condition of various property types, new and old, including Domestic and Commercial. The position is Home-based, covering all postcode areas throughout the U.K.
Fees range from between £150-£195 per inspection, previous experience in building surveying and or buildings insurance claim surveying with a proven track record or property inspection experience essential.
If you or someone you know meets these requirements and wants to be part of the team of the best surveying company in the UK, please contact us at hichinfo@aol.co.uk
