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Largest monthly house price increase in a year

Adam Williams
Written By:
Adam Williams
Posted:
Updated:
29/04/2015

House prices grew 1% in April, the fastest rise since last summer, the latest Nationwide house price index has found.

The building society said prices had risen by 5.2% in the last 12 months to reach an average of £193,048.

The 1% month-on-month rise compares favourably to the 0.1% increase recorded in March 2015.

Nationwide said this was the fastest growth since June 2014.

Chief economist Robert Gardner said the strong price growth was at odds with a quiet property market.

“The pick-up in price growth has occurred even though the pace of activity in the housing market has remained fairly subdued in recent months,” he said.

“Indeed, the number of mortgage approvals is still well below its long run average and 20% below the levels recorded in early 2014.

“The strength of the economy and relatively subdued pace of activity in the housing market remains something of an anomaly. It is possible that heightened uncertainty ahead of the election is weighing on activity, though there is no compelling evidence from previous UK elections to suggest a strong impact.

“Healthy labour market conditions and continued low mortgage rates should help underpin housing demand in the quarters ahead.

Jonathan Samuels, chief executive of Dragonfly Property Finance, also believed the market had grown more conservative since the financial crisis.

“The 1% April price increase, coming a little out of the blue, underlines the inherent volatility of the property market. It truly is a law unto itself,” he said.

“While mortgages are cheap, employment high and the cost of living low, people are far more cautious than they were in the past.

“There is an element of caution, and conservatism, in the market that perhaps wasn’t there before 2008.

“The fact that first quarter economic growth wasn’t as strong as expected is certainly consistent with more subdued activity levels.

“People are more aware than ever that the property market is a double-edged sword. And prices overall are high. Buying a property is not a decision that can be taken lightly.”


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