The Nationwide House Price Index for April has been released, revealing a slight slow at 12.1%.
Despite the slowing growth rate however, Nationwide’s latest House Price Index shows that the market is now enjoying its 11th consecutive month in double figures.
In April the average price hit £267,620, up £28,789 since last April, and the report also shows that 38% of people are either moving or considering a move; even higher than this time last year.
In terms of property sizes and types the report revealed that 24% want a larger property, but the number wanting outside space has dropped from 25% to 12%, and those wanting to leave urban areas has fallen from 28% to 15%. Additionally, 17% said they wanted to move to cut their outgoings.
Iain McKenzie, CEO of The Guild of Property Professionals, says:
“The inexorable rise of house prices is finally showing some signs of slowing as economic realities start to exert some effect. This cooling effect looks set to continue in the months ahead, as the cost-of-living crisis encourages buyers to be more cautious about paying over the odds for the right home.
Potential interest rate rises and the pressures of inflation will come to bear in the coming months, which will increasingly have a dampening effect on the market. However, over a third of people are considering a move in the near future and that demand, combined with solid mortgage approval numbers, will help prop up house prices.
Across all ages, movers are still looking for properties away from urban environments, and the amount of people working from home will keep prices higher in commuter areas.”
Sarah Coles, senior personal finance analyst, Hargreaves Lansdown commented:
“We’re even more keen to move than we were this time last year, and demand is supporting higher prices. Much of what has driven price growth is still in place. Buyers remain worried that if they don’t crack on and buy soon, prices will rise even further out of reach; mortgages rates are rising, but remain reasonably low by historic standards; and the jobs market is flourishing, so we have the confidence to buy. There are also plenty of buyers who still have some lockdown savings they want to put to good use.
However, headwinds are building, which will make it more and more difficult for people to stretch themselves – however keen they remain. Rising prices in themselves make it more difficult for people to afford the home they need, as almost a year of double-digit price rises has been accompanied by wage rises in low single figures.
Mortgage rates continue to rise, and have hit a five-year high (according to Moneyfacts). The market is pricing in another Bank of England rate rise next week – and a bigger one this time – which could push buyers to their limits.”
