Sundeep Lakhtaria, Partner at Urban Exposure comments today on the Nationwide House Price data release:
“The return of house price growth in the Nationwide index puts the weaker data we have seen in the last few months into question and suggests that the market is not in peril.
“Taking just last week as an example, there was plenty of evidence of the market continuing to show strength, with Hometrack data for example underlining the health of regional markets such as Birmingham and Manchester which saw annual house price growth of 7.7 per cent and 6.8 per cent respectively. Alongside this, listed national housebuilders continue to report record trading, with growth in volumes, selling prices and profits.
“The strength of the UK’s housing market is built on its robust fundamentals, which we believe remain – not enough homes are being built to meet ongoing demand supported by a strong jobs market and good access to mortgage finance.
“Although the recent General Election result was unexpected in terms of the number of seats won by each party, the outcome is that we still have the same Conservative Prime Minister leading a Government who remain committed to supporting the housing market. Likewise, we know who will lead the UK through the Brexit negotiations and so this will hopefully bring more economic certainty in due course.”
Read the full report here.