READ MORE: Housing market steady despite higher mortgage rates: Zoopla
Nationwide’s latest House Price Index reported that annual house price growth accelerated to 3% in April, up from 2.2% in March, with values rising by 0.4% on a seasonally adjusted monthly basis. The average UK home now costs £278,880, compared with £277,186 in March, underlining the market’s resilience after last year’s slowdown.
Robert Gardner, Nationwide’s chief economist, said that “despite the uncertainty caused by developments in the Middle East and the subsequent rise in energy prices, the UK housing market has continued to regain momentum following the slowdown recorded around the turn of the year.”
Jason Tebb, president of OnTheMarket, drew a similar conclusion. “Despite the challenging economic backdrop, the housing market continues to demonstrate the resilience it has become known for. Average prices edged up slightly as focused buyers are price-sensitive and negotiating hard, while sellers realise that they will struggle to sell over-priced homes,” he said.
“Those who need to move are continuing to transact and will be buoyed by lenders trimming their mortgage rates in recent days. The Bank of England’s decision to hold interest rates for another month should also have a steadying effect on momentum in the market, suggesting stability and no need to panic. Increased stock, as sellers try to take advantage of what is usually a busier spring market, is giving buyers more choice than has been the case for a while and this should help keep prices in check.”