During the run-up to the general election held earlier this month, house prices across the UK resumed an upward trend, according to the Nationwide Building Society. Between March and April, prices rose by 1% – the largest monthly rise since June 2014. In addition, the annual pace of growth rose to 5.2%, the first time that this measure has risen in seven months.
The average house price in the UK is now £193,048 – the highest figure yet recorded by Nationwide and the first time prices have exceeded £190,000. Nationwide reported that demand for homes was supported by the improving economy, rising employment and low mortgage rates.
On the quarterly measure, often seen as more dependable than monthly change, Halifax said prices rose by 2.2%, the slowest rise since January giving people more confidence to move home.
In the view of market experts, the priority for the new Government must now be to continue to foster stability in the housing market, as the economy continues to recover.
The previous Government’s policies of promoting home ownership through schemes such as Help to Buy and the changes to the Stamp Duty system were positive reforms. Industry experts would now like to see the Government make pledges to substantially increase the supply of new homes throughout the country. They also caution that, while the economic situation continues to improve steadily, with falling prices and rising wages, it remains critical that the Bank of England continues to take a cautious approach to interest rates.
All information is correct at the time of posting. John M Lewis & Co. does not support or endorse any political party.
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