30 September 2024
If you are covering the latest Nationwide HPI, please see the following comment from Holly Tomlinson, financial planner at Quilter:
"The latest house price data from Nationwide shows that house prices saw a large 0.7% growth in September, resulting in an annual rate of 3.2% representing the fastest growth in two years. This follows a trend of moderate gains, even as the traditional summer lull typically cools activity. The latest property statistics for August 2024 highlight this resilience, with residential transactions standing at 90,210, a 5% increase from the same period last year, though down slightly compared to July.
"As economic conditions begin to stabilise, both buyers and sellers are finding that they are more compelled to get house hunting again helping to stimulate this growth in prices. The Bank of England’s recent move to hold the base rate steady, while not transformative to mortgage rates, does continue to provide stability to the market and will continue to help more competitive mortgage deals re-enter the market. Lenders are competing to attract custom, and a more stable environment is likely to mean they go further with rate cuts.
"Fixed-rate and tracker mortgage options continue to present a key decision point for many buyers. While fixed-rate deals provide much-needed certainty, particularly in these unpredictable times, they remain elevated compared to pre-pandemic levels with many people likely shocked when they come to remortgage. As a result, more people are now choosing to look at tracker mortgage deals as they bide their time before fixing later down the road, but this must be weighed against potential early repayment charges.
"The upcoming Labour budget is likely going to have a limited impact on further buoying the property market. With the government primarily focused on addressing broader fiscal challenges, including a £22 billion fiscal shortfall, significant housing stimulus seems unlikely at this stage. However, this morning’s results show that organically house prices are returning to a strong upward trajectory."
