House Prices Keep Growing

House Prices Keep Growing.

Nationwide have released figures showing that the housing market rose in June by 0.3%.

The annual rate also grew to 1.9% the highest rate in 3 years meaningthe average house price costs £168,941.

Reasons linked to this are the Funding for Lending Scheme which meant banks could lend money from the Bank of England for cheaper than market rates.

The Funding for Lending Scheme means that the cost of credit was reduced and job opportunities were improved. However Nationwide also said that housing supply remained slow and numbers in new home builds were down.

Our View

House price rises are needed to boost public confidence in their own wealth and security as well as reducing toxic debt values for banks.  We expect indirect stimulus of the property market for some time yet.