Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Annual UK house price growth slowed slightly in April but remained robust, according to figures from Nationwide on Friday.
UK house prices rose 12% year-on-year in April, slowing from March's 14% climb.
‘Nevertheless, this is the 11th time in the past 12 months that the annual growth rate has been in double digits,’ Nationwide analyst Robert Gardner commented.
On a monthly basis, the average UK house price climbed 0.3% to £267,620, from £265,312. In March, prices had risen 1.1% monthly.
Gardner added: ‘Housing market activity has remained solid with mortgage approvals continuing to run above pre-Covid levels. Demand is being supported by robust labour market conditions, where employment growth has remained strong and the unemployment rate has fallen back to pre-pandemic lows. With the stock of homes on the market still low, this has translated into continued upward pressure on house prices.’
The Nationwide analyst said the housing market's continued strength is somewhat of a surprise. UK consumers are facing rampant inflationary pressures and surging energy bills.
‘Indeed, consumers' expectations of their own personal finances over the next twelve months has dropped to levels last seen during the depths of the global financial crisis more than a decade ago. Moreover, housing affordability has deteriorated because house price growth has been outstripping income growth by a wide margin over the past two years, while more recently borrowing costs have increased (though they remain low by historic standards),’ Gardner added.
The UK housing market re-emerged from the initial spring 2020 lockdown strongly.
The sector benefited from stamp duty relief that was only recently removed.
In March 2021, UK Chancellor of the Exchequer Rishi Sunak extended the stamp duty cut granted in 2020 to the end of June 2021 at a £500,000 nil rate band, which was then tapered to a £250,000 threshold until the end of this past September.
Copyright 2022 Alliance News Limited. All Rights Reserved.