Nationwide: House prices rise 13.4%

Annual house price growth reached 13.4% in June, the highest level since November 2004, according to the Nationwide house price index.

On a monthly basis house prices have risen by 0.7%, after taking account of seasonal factors.

As a result of the change in house prices, the average property is currently valued at £245,432.

Nationwide cuts fixed rates by up to 0.16%

Northern Ireland has seen the strongest growth in Q2, while Scotland has seen the weakest, closely followed by London

Robert Gardner, chief economist of Nationwide, said: “Annual house price growth accelerated to 13.4% in June, the highest outturn since November 2004.

“While the strength is partly due to base effects, with June last year unusually weak due to the first lockdown, the market continues to show significant momentum.

“Indeed, June saw the third consecutive month-on-month rise (0.7%), after taking account of seasonal effects. Prices in June were almost 5% higher than in March.

“Regional data for the three months to June indicates that all parts of the UK saw an acceleration in annual house price growth.

“Northern Ireland and Wales saw the largest gains, at 14% and 13.4% respectively in Q2.

“By contrast Scotland saw the weakest rate of annual growth, at 7.1% closely followed by London at 7.3%.”

Sundeep Patel, director of sales at Together, added: “Another month of strong growth for house prices goes to show just how competitive the race for space has become, with buyers still eager to snap up properties at pandemic prices, ahead of the first taper for the stamp duty holiday extension ending this week.

“Today’s figures show house prices were up by 0.7% month-on-month and annual house prices rose by a staggering 13.4% – the highest level recorded since November 2004.

“That said, from the second half of the year onwards, we are expecting to see things start to slow down as potential buyers adapt to this next phase of the pandemic, without government support and tax breaks.

“Whatever property financing is needed in the future, lenders who can offer a degree of flexibility are going to be highly sought after, as people look to pursue property plans against their changing needs in the market.”

Iain McKenzie, chief executive of The Guild of Property Professionals, said: “As the nation bites its fingernails ahead of England versus Germany, take solace in one battle with a predictable result – the relentless growth of the housing market.

“With only days to go until the deadline to take advantage of the stamp duty holiday in full, the market is seeing a last minute scramble to complete sales.

“The 13% price rise compared to last June – the highest since 2004 – looks impressive, but it’s important to remember that this time last year the market was mired in lockdown.

“More noteworthy is the three consecutive months of price rises, and a sign of underlying consumer confidence and strength of the housing market.

“All parts of the UK have seen house prices increase, but the good news for many is that mortgage payments remain stable and affordable.”

Guy Gittins, chief executive of Chestertons, said: “Buyer enquiries and the number of agreed sales reached record heights in Q1 which simply couldn’t be maintained long-term.

“Although the number of buyer enquiries remains at record levels annually and the volume of viewings is at a five-year high, we are now entering a more balanced market.

“As a result, demand is currently met by supply and Chestertons brought 38% more properties to the market than this time last year.

“Due to the volume of available stock, price inflation has and will continue to be kept at bay.

“The same can’t be said for the micro-markets of Prime Central London, however, where our branches registered a clear spike in buyer interest and our Knightsbridge office finalised eight sales in just one week this month. Due to limited stock, we expect prices to increase accordingly.

“Looking ahead, we predict the number of new buyer registrations to return to normal levels but the market to remain buoyant due to the wave of house hunters who registered over the past 12 months.”