UK annual house price growth picked up to 3.0% in April, from 2.2% in March, and house prices were up 0.4% month on month, according to the latest data from the Nationwide House Price Index.
Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said:
“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.
“This is somewhat surprising given that indicators of consumer confidence have weakened noticeably. GfK’s headline index has fallen to its lowest level since late‑2023, reflecting households’ more pessimistic views of the economic outlook and their own financial position over the year ahead.
He added: “Measures of housing market sentiment have also deteriorated. The Royal Institution of Chartered Surveyors reported a sharp fall in new buyer enquiries in March, taking the index to its weakest reading since 2023. This softening is likely to have been influenced by higher market interest rates following the onset of the conflict, alongside a more uncertain backdrop.”
“The market is likely being supported by the relative strength of household finances. In aggregate, household debt is at its lowest level relative to income for around two decades, and sizeable savings buffers have been built up in recent years, although these have not been evenly distributed across households.
Garrington Property Finders chief executive Jonathan Hopper commented:
“It’s a stretch to say it’s business as usual, but Nationwide’s data does confirm business is still being done and this is not a market in freefall.
“National average prices continued to tick up in April, and Nationwide calculates that the average home is now worth almost £1700 more than it was a month ago.
“However one swallow does not a summer make and national averages can be misleading. What we’re seeing on the ground is a series of highly polarised regional markets, with different parts of the country performing quite differently by location, property type and price sector.
He added: “Supply is at an all-time high after the Easter weekend saw the traditional surge in new listings. Nevertheless the number of sales being agreed is more frugal than free-flowing. “This is due to two factors – buyer caution and buyers’ knowledge that they have time and choice on their side.
“In many areas the number of homes for sale far exceeds the number of serious buyers, and this is allowing buyers to call the shots on both tempo and price.”
