UK house prices continue to defy the Brexit vote gloom after rising 0.6% in August, Nationwide has revealed.
The lender’s latest house price index showed the monthly increase also pushed up annual growth from 5.2% to 5.6%, giving an average figure of £206,145 in August.
Robert Gardner, chief economist for Nationwide said the outlook for the market remains clouded.
He said: “The pick-up in price growth is somewhat at odds with signs that housing market activity has slowed in recent months.
“New buyer enquiries have softened as a result of the introduction of additional Stamp Duty on second homes in April and the uncertainty surrounding the EU referendum. The number of mortgages approved for house purchase fell to an 18-month low in July.
“However, the decline in demand appears to have been matched by weakness on the supply side of the market. Surveyors report that instructions to sell have also declined and the stock of properties on the market remains close to 30-year lows. This helps to explain why the pace of house price growth has remained broadly stable.”
Saying the outlook for the housing market is still clouded, he added: “What happens next on the demand side will be determined, to a large extent, by the outlook for the labour market and confidence amongst prospective buyers.”
Adrian Gill, executive director of Your Move & Reeds Rains, said: “Many people forget that a slowdown in the market is normal at this time of year. As such, we shouldn’t necessarily read too much into these figures or see them as a harbinger of a broader decline in the market.
“As we move into the second half of 2016, we will start to get a clearer picture of what the new normal will look like in the UK housing market.
“Without a doubt, there will be both positive and negative influences to address, but record low interest rates and the perpetual gap between supply and demand will continue to drive house price inflation for the foreseeable future.”
Comments (2)
Probably the most significant story on Eye today. Time for the panic to stop methinks.
Brexit has absolutely no affect on the housing market, June period activity levels have fallen off a cliff for several years now which I believe is down to the ridiculous hike in holiday prices so it’s obvious people go away before that happens. Properties coming to market have been on the decline since 2008. Successive Governments through no action and through the wrong action have been and are still grinding it to a halt. There are many contributing factors as there are many things that would need serious alteration to get the market back where it should be.