Nationwide House Price Index
- The data reflects house purchases post survey approvals stage
- House price growth is in positive territory
- Buyers at all levels are benefiting from some of the lowest interest rates
Brian Murphy, Head of Lending at Mortgage Advice Bureau, comments:
“The data released from the Nationwide today reflects lending for house purchases at post survey approvals stage, so provides us with one of the first snapshots of the UK housing market in July from one of the country’s biggest mortgage providers.
The figures this morning suggest that house price growth is still in positive territory, with both a 2.9% annual increase and a 0.3% month on month increase. This underscores what Mortgage Advice Bureau are observing in the market and have been saying for some time, which is that consumer confidence in property remains robust and that demand remains largely undented. The Nationwide data also correlates with projections from other industry bodies, such as RICS, that house price growth will reach between 2% and 4% in 2017, so in this respect the market is absolutely performing to expectations.
It is, of course, the ongoing lack of supply coupled with continuing demand for property that is driving prices, although the mix appears to be changing with Landlords transacting less frequently – or indeed divesting their portfolios in some cases – due to the tax changes, which has led to an opportunity for First Time Buyers who would normally be competing for the same type of property with an investor. Now we’re seeing more First Time Buyers getting on the ladder, which is of course great news as they underpin the rest of the market, so it’s possible to suggest that this particular trend, which has been emerging since the beginning of this year, could ripple through to the rest of the market in months to come. Buyers at all levels are also benefitting from some of the lowest interest rates ever offered by lenders, together with the increased availability of 5% and 10% deposit mortgages, all of which reflect the fact that the UK lending community is very much open for business.
Of course, we are hitting peak holiday time now, and seasonally sales do slow in August as many put their home moving plans on hold to take their well-earned Summer break. That said, we are going into one of the traditionally more quiet times of the year with the UK housing market in good shape, potentially suggesting that the second half of 2017 could see the market remain at a stable trajectory.”
To read the full data report, please click here.