Annual house price growth in the UK accelerated to 11 per cent last month, a smidgeon up on June’s 10.7 per cent, according to the Nationwide.
House prices increased by 0.1 per cent month-on-month - the 12th consecutive monthly increase - taking the typical house price in July to £271,209.
Nationwide’s chief economist Robert Gardner says: “The housing market has retained a surprising degree of momentum given the mounting pressures on household budgets from high inflation, which has already driven consumer confidence to all-time lows. While there are tentative signs of a slowdown in activity, with a dip in the number of mortgage approvals for house purchases in June, this has yet to feed through to price growth.
“Demand continues to be supported by strong labour market conditions, where the unemployment rate remains near 50-year lows and with the number of job vacancies close to record highs. At the same time, the limited stock of homes on the market has helped keep upward pressure on house prices.
“We continue to expect the market to slow as pressure on household budgets intensifies in the coming quarters, with inflation set to reach double digits towards the end of the year. Moreover, the Bank of England is widely expected to raise interest rates further, which will also exert a cooling impact on the market if this feeds through to mortgage rates.”
Gardner says total housing market transactions in the three months to May were around 20 per cent below the highs experienced during the stamp duty holiday frenzy, but five per cent above pre-pandemic levels.
Gardner adds: “The number of cash transactions has remained elevated, though its share of activity has remained broadly stable at around 35 per cent. This is partly a reflection of an ageing population where more people own their homes outright. However, properties purchased for investment, such as a holiday home or buy to let, is also an important element of the cash market.
“Buy to let purchases involving a mortgage also remain higher than pre-pandemic levels. Sentiment is likely buoyed by the fact that rental demand remains strong, with upward pressure on rents, which may be encouraging landlords to enter the market, particularly if they view property as a hedge against inflation.”
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Newsflash - house prices have have risen with inflation for 12 months in a row.
Sorry Steve, failed to keep up with inflation.
That's not capital appreciation when the ''real'' rate of inflation is over 11%
I can't afford the number of pints of beer I postponed buying around 30 years ago, roughly 40,000 per property.
On the other hand, having avoided buying around 1 million pints, I'm still alive and healthy - and usually sober!
I would think a pub crawl in your company would be very enjoyable Robert
Old news…… property is expensive and getting worse 🙄 are these stories all they have ? Build Build Build …. But the government are useless.
Regarding another matter that doesn’t seem to be covered on here. The WHITE PAPER CONSULTATION closing date 15th August 2022, urgent to respond to the listed questions in not more than 3000 words unfortunately I cannot take part it’s only for Digital Academics landlords, has to be down loaded / uploaded all that alien nonsense. That excluded me and thousands of other traditional landlords so we don’t have a voice anymore well done.
That's a real pity Michael because you always have something so relevant and intelligent to say on rental reform.
That excludes me as well, but even if it did not excludes you and me Michael do you really think that they are the least bit interested in our input, ideas, or comments, of course they are not, it's a done deal, but government, shelter and tenants will live to regret the consequences of this white paper
I am not certain that you do have to upload your response. I think they may make provision to receive your comments in a different form. It says If you need help submitting your evidence, contact the Levelling Up, Housing and Communities Committee by email at luhccom@parliament.uk, or by phone on Committee staff: 020 7219 6930
It is not difficult to upload a document to an email.
At the bottom of the email there is a symbol like a paperclip.
Just click on the paperclip and the documents on your computer will appear with a notice saying "attach files"
Select the document that you want to attach and it will appear in the box called file name, and then click the box which has the word "open" in it - and then that attaches the document to the email.
I suppose you are right Andrew, consultations a smoke screen like the HMO consultation when a guy came from York and I attended the 3 Venues, Southall, Ealing Broadway and Acton, It was based on the Mayhew Report, he told us what was coming in and that’s it, there’s your consultation.
When we questioned parts of the report he was dumfounded he didn’t know the areas like us, anyhow his fee was £100k, outrageous but peanuts by comparison to the millions the Scheme has taken off us.
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