UK property prices rebound to a new high

The latest Nationwide Building Society index has shown that UK property prices rebound to a new high. House prices in the UK have bounced back from their previous months decline. Data shows a 1.1 per cent rise in June, the highest since April 2015. Therefore, showing that the current market is not all doom and gloom; there are still great property deals available for investors.  House prices in the UK recorded their strongest monthly growth for more than two years in June, according to the latest index from the Nationwide Building Society. Average house prices across the UK at a record high. After recording declines in each of the previous three months, Nationwide said June saw a 1.1 per cent, month-on-month rise, the highest since April 2015, bringing the average price across the UK to a new record of £211,301.On an annual basis, prices are now increasing at an average of 3.1 per cent, although there are marked differences between different parts of the country.While prices in East Anglia increased by five per cent year-on-year, 4.5 per cent in SW England, and 4.4 per cent in both the East Midlands and NW England, the annual rise was only 1.1 per cent in NE England, 1.2 per cent in London and 1.4 per cent in Wales. Growth was 1.7 per cent in Scotland and 3.8 per cent in Northern Ireland.

A shift in regional house price trends

Robert Gardner, chief economist at Nationwide, said, “There has been a shift in regional house price trends. Price growth in the South of England has moderated, converging with the rates prevailing in the rest of the country.“In Q2, the gap between the strongest performing region and the weakest was the smallest on record; based on data going back to 1974.“London saw a particularly marked slowdown; with annual price growth moderating to just 1.2 per cent. Therefore it was the second slowest pace of the 13 UK regions; representing the weakest pace of growth in the capital since 2012.” Read More: UK buy-to-let Rental Market

Possible House Price Volatility In The Short Term

Gardner warned that the index could be volatile over the coming months. The growing squeeze on household incomes amid rising inflation appeared to be “exerting a drag on housing market activity in recent months”. “Given the ongoing uncertainties around the UK’s future trading arrangements; the economic outlook remains unusually uncertain, and housing market trends will depend crucially on developments in the wider economy. “Nevertheless, in our view, household spending is likely to slow in the quarters ahead, along with the wider economy, as rising inflation squeezes household budgets. Furthermore, coupled with ongoing housing affordability pressures; may continue to slow housing market activity and house price growth in the quarters ahead. “However, the subdued level of building activity and the shortage of properties on the market are likely to provide support for prices.” Jeremy Leafformer residential chairman of the Royal Institution of Chartered Surveyors, said; UK property prices rebound to a new high,  “figures are a little surprising when you consider some of the mixed messages that we have been receiving from the housing market over the past few months. But they do demonstrate that buyers and sellers are prepared to be realistic and take advantage of the low mortgage rates available.“Last month, Nationwide reported that house prices rose at their slowest rate in almost four years so this is a welcome change but does underline the dangers of looking at one month’s figures in isolation as the market can be quite volatile.”

Past Performance

Thanks to its stellar performance stretching back years. We’ve been confident on London shrgging off any nationwide slowdown, but the tables have turned, if only briefly. If this trend continues in July then that is going to turn some heads. The market across the country, bouncing back slightly in such conditions demonstrates; the solid demand and weak supply. These are the factors which are cushioning the market.“However, it may be short-lived. Click here to see our current properties for sale