BREAKING: House prices rise for 12th month in a row to annual rate of 11%
The Nationwide has recorded a ‘surprising’ 12th consecutive rise in house prices, maintaining the year-on-year figure in double-digit territory.
Its index reveals that house prices increased by 0.1% last month, pushing annual house price inflation to 11% and the average price to £271,613.
Although the increase is small and price rises are slowing, the continuing imbalance between supply and demand will lead many experts to predict that such a large annual rise may lead to more landlords to quit the market as some cash-in on the equity sitting in their properties.
But Savills says this may be offset by new investors entering the buy-to-let market looking for an alternative to stock market volatility for their cash – although the current stock shortage within the private rented sector would indicate otherwise.
As we reported last month, some 46,000 properties have disappeared from the rental market so far this year.
“The housing market has retained a surprising degree of momentum given the mounting pressures on household budgets from high inflation, which has already driven consumer confidence to all-time lows,” says Robert Gardner, Nationwide’s Chief Economist (pictured).
“While there are tentative signs of a slowdown in activity, with a dip in the number of mortgage approvals for house purchases in June, this has yet to feed through to price growth.”
Jeremy Leaf, (pictured) north London estate agent and a former RICS residential chairman, says: “The only surprise in these figures is why it is taking so long for the slowdown we have noticed in our offices over the past few months to be reflected in the numbers.
“But don’t get me wrong – we are seeing a reduction in growth, not a major correction as prices continue to be supported by lack of choice and a strong labour market.”
