House prices reached a record high in July, according to figures from Nationwide…
The Nationwide House Price Index showed that the average price of a house in the UK increased by 0.4% on the previous month, and annual house price growth went up to 3.5%.
The average price of a home in the UK is now £195,621.
Robert Gardner, Chief Economist at Nationwide said: “After moderating over the past 12 months, there are tentative signs that annual house price growth may be stabilising close to the pace of earnings growth, which has historically been around 4%.”
“The outlook on the demand side remains encouraging.
“Employment growth has remained relatively robust in recent quarters, and, after a prolonged period of subdued growth, wage growth is also edging up.
“With consumer confidence buoyant and mortgage rates still close to all-time lows, demand for housing is likely to firm up in the quarters ahead.”
However this promising outlook depends on whether the housing development industry picks up.
Robert added: “It remains unclear whether activity on the supply side will catch up with demand.”
“The number of new homes under construction has started to pick up, albeit from historically low levels, and further increases are required if a sustainable recovery in the housing market is to be maintained over the longer term.”
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