• Pensions

    Pensions+

    Whether you're saving for retirement or you are facing decisions at retirement, we can help

    View more
  • Savings Planning

    Savings+Planning

    Saving for the future is important and we can help you select the right product to achieve your goals

    View more
  • Mortgage Advice

    Mortgage+Advice

    We are specialists in arranging mortgages for First Time Buyers, people moving home, 'Buy to Let' mortgages and remortgages.

    View more
  • Investment Advice

    Investment+Advice

    Make the most of your money and don't leave it languishing in Building Society accounts

    View more
  • Equity Release

    Equity+Release

    Allows you to access cash tied up in your home - speak to one of our qualified advisers

    View more
  • Protect Insure

    Protect+Insure

    We can shop around for the lowest cost life cover, income protection and critical illness cover

    View more
 

House price growth shows 'moderation', Nationwide says

House price growth is showing "tentative signs of moderation", according to the UK's second biggest mortgage lender.

Nationwide said house price inflation was slowing, on both a monthly and quarterly basis.

However, when measured annually, price growth accelerated in March, with prices up 9.5% from a year earlier.

Meanwhile, the gap between house prices in London and the rest of the UK has reached a record.

Average values in the capital are now more than double those in the rest of the UK, at £362,699.

The overall average house value in the UK now stands at £180,264, the highest since January 2008, although that figure is still 3% below the 2007 house price peak.

Although March saw the 15th successive monthly increase in prices, the rate of increase is slowing. Prices rose 0.4% last month, the Nationwide said, compared with a 0.7% increase in February.

In the three months to March, prices rose by an average of 2.6%, down from a 3% rise in the three months to February.

Further evidence of a slowdown came from the Bank of England this week, which reported a sharp fall in the number of mortgage approvals in February, following an unusually active January.

"There are some tentative signs of moderation," said Nationwide's chief economist, Robert Gardner.

However, he added that annual price growth was "continuing to run at a robust pace" and that low mortgage rates and an improved economic outlook meant the housing market recovery was now "firmly established".

London house prices in the first quarter of this year were up 18% compared with the same period in 2013, and prices in the capital are now 20% above their 2007 peak, Nationwide said.

"The gap between house prices in London and the rest of the UK is the widest it's ever been," Mr Gardner added.

However, the figures show that house prices are surging in other cities too.

Prices in Manchester have risen by 18% over the past 12 months, while prices in both Brighton and Cambridge rose by 14%.

In contrast, prices in Sunderland rose by just 1%, and in Coventry by 2%.

Despite this, Nationwide said all UK regions saw house price growth for the third quarter in a row.

The lender also reiterated its concern that not enough new properties were available to satisfy the growing demand, with new builds 40% below pre-crisis levels.

The Nationwide's figures are based on a sample of its own lending, and differ from other data.

Last week the Office for National Statistics said UK house prices in January were up 6.8% compared with a year earlier, driven by a 13.2% increase in London.

The recent surge in prices has been put down to continuing low mortgage rates, and the impact of the government's Help to Buy scheme.

The first part of the scheme offers government loans of up to 20% on new homes.

The second part, the mortgage guarantee scheme, insures lenders against losses if homeowners default on repayments.

In the Budget, Chancellor George Osborne confirmed plans to extend the first phase of Help to Buy - the equity loan offer - until the end of the decade.

But the Bank of England, among others, has warned the scheme could create a housing market bubble.                                  Source:  BBC News

Sam: 3rd Apr 2014 16:32:00

 

Latest News

Lenders relax maximum mortgage age
Lenders relax maximum mortgage age If you're an older homeowner, the last few years may have been challenging if you were looking to remortgage your property.

Read More >>

Drawdown investors remain optimistic
Drawdown investors remain optimistic The onset of the pension freedoms gave retirees more choice than ever over how to spend their pension pot, and many are making the most of that flexibility by opting for income drawdown, whereby their pension savings remain invested in the stock market. Yet this in itself can pose risks, particularly given how volatile the stock market can be, but luckily, investors don't seem to be put off.

Read More >>

Equity release lending hits record £3.6bn
Equity release lending hits record £3.6bn 2018 proved to be another record year for the equity release sector, with latest figures revealing that retired homeowners released £3.6bn in property wealth over the year, the highest annual total ever seen – and by all accounts, 2019 could go even better!

Read More >>

Motivation to remortgage at 11-year high
Motivation to remortgage at 11-year high The financial incentive for mortgage borrowers reaching the end of their current fixed rate deal to remortgage to a new deal has soared to an 11-year high.

Read More >>

What's coming up in 2018....

Read More >>

See all News...
  • Pensions

    Pensions+

    Whether you're saving for retirement or you are facing decisions at retirement, we can help

    View more
  • Savings Planning

    Savings+Planning

    Saving for the future is important and we can help you select the right product to achieve your goals

    View more
  • Mortgage Advice

    Mortgage+Advice

    We are specialists in arranging mortgages for First Time Buyers, people moving home, 'Buy to Let' mortgages and remortgages.

    View more
  • Investment Advice

    Investment+Advice

    Make the most of your money and don't leave it languishing in Building Society accounts

    View more
  • Equity Release

    Equity+Release

    Allows you to access cash tied up in your home - speak to one of our qualified advisers

    View more
  • Protect Insure

    Protect+Insure

    We can shop around for the lowest cost life cover, income protection and critical illness cover

    View more