- Prior +1.1%
- House prices +12.1% vs +12.6% y/y expected
- Prior +14.3%
House price growth may have slowed in April but the trend is still not really letting up (nine straight months now), with the annual reading still sticking in double digits. The average price of dwellings in the UK increased to £267,620. Nationwide notes that:
"Housing market activity has remained solid with mortgage approvals continuing to run above pre- COVID-19 levels. Demand is being supported by robust labour market conditions, where employment growth has remained strong and the unemployment rate has fallen back to pre-pandemic lows. With the stock of homes on the market still low, this has translated into continued upward pressure on house prices.
“Nevertheless, it is surprising that conditions have remained so buoyant, given mounting pressure on household budgets which has severely dented consumer confidence. Indeed, consumers’ expectations of their own personal finances over the next twelve months has dropped to levels last seen during the depths of the global financial crisis more than a decade ago. Moreover, housing affordability has deteriorated because house price growth has been outstripping income growth by a wide margin over the past two years, while more recently borrowing costs have increased (though they remain low by historic standards)."