02 May 2023
If you are covering the Nationwide House Price Index, please see the following comment from Karen Noye, mortgage expert at Quilter:
"The housing market remains incredibly difficult to predict as in April, house prices experienced a modest 0.5% increase after a torrid few months. However, the market continues to grapple with substantial economic obstacles including stickier than hoped inflation, which adds strain on budgets and translates to lower offers on properties. So whether this month marks the start of rising house prices again remains to be seen.
"The small increase does marry up with a notable uptick in consumer confidence as people come to terms with mortgage rates around 4.5% with it being unlikely that they will be too volatile in the future. But it is likely more interest rate rises are coming down the line, which will inevitably could push mortgage rates up, but so far, homeowners appear to be coping with these heightened costs, preventing a huge slide in house prices. Clearly if we witness anything like the volatility of last year that will be a different matter. The health of the property market and the extent of demand will be tested during the traditionally busy spring and summer months.
"The papers over the long weekend were rife with housing rumours such as the claim that the government is hatching a plan, which might include a revival of the Help to Buy scheme. The rejuvenated scheme may also include older houses as well as new builds, which would allay concerns from the industry that the scheme will simply line housebuilders pockets like it did previously. Labour have also come out saying that they are going to reinstate a the policy of building 300,000 new homes a year. These targets have largely been dropped by the current government.
"As the next election looms housing may become a key battleground for both parties whether house prices rise or fall. The next few months of house price data will prove critical to what kind of campaign the parties mount."
