02 April 2024
If you are covering the latest Nationwide House Price Index, please see the following comment from Karen Noye, mortgage expert at Quilter:
"Although prices have surprisingly edged down in March, they still have increased on an annual basis by 1.6%, according to the latest Nationwide house price index.
"We’ve grown accustomed to house prices returning to an upward trajectory, so this slight dip will be cause for concern for homeowners. However, with a traditionally busier period just starting it is unlikely this trend will continue. Similarly, the annual increase is remarkable given how subdued the market has been.
"This annual increase should serve as a serious wake up call to government, highlighting the real-world impact of repeatedly missing house-building targets. Given the lack of demand due to the cost-of-living crisis, house prices should have decreased but because there is such little housing stock, prices continue on an upward course.
"As interest rates are set to decrease again and demand expected to pick up during spring, this small monthly dip in prices is likely to represent a blip rather than a trend.
"House price inflation has often been positioned as a good news story but younger generations are now facing such an uphill battle to get anything like enough money together for a deposit a further increase will be worrying. Wage growth simply fails to keep up with house price growth and there is a real worry that there will eventually be a generation that enters into retirement needing to have enough in their pension to pay for their living expenses but also for rental costs. This represents a tall order."
