House Prices Up Slightly

Published / Last Updated on 01/08/2018

House prices indexNationwide has published its latest house prices index for July 2018 showing a marginal increase in yearly house prices from 2.0% pa in June to 2.5% pa in July.  This is also a faster rate of growth than in May at 2.4% pa.

For July 2018 alone, average house prices across the UK rose by 0.6%, following a rise of 0.7% in June and just 0.2% in May.

The reality is that house prices are still, but only just, modestly creeping up.  The average house price in the UK, according to Nationwide, is now £217,010 and with steady house prices of between 2% and 3% pa for over a year now, it would appear that supply and demand are in balance.

Comment

Much depends now on the confidence in the economy.  Interest rate are low and progressively more and more are starting to fix mortgage rates with over 90% now of mortgage applications on a fixed rate basis as opposed to around 45% in 2010 according to Nationwide figures.

We and clearly, the public and their advisers expect interest rate rises in 2018 but given that many borrowers are now protecting their position, it may be that property supply/demand will remain steady but perhaps slow down a little more as many have locked into fixed rates thereby discouraging moving whilst Brexit and economic uncertainty remain.

Read Nationwide's report: https://www.nationwide.co.uk/-/media/MainSite/documents/about/house-price-index/2018/Jul_2018.pdf


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