{"id":6101108,"date":"2024-05-31T12:35:48","date_gmt":"2024-05-31T11:35:48","guid":{"rendered":"https:\/\/www.buyassociationgroup.com\/en-gb\/?p=6101108"},"modified":"2024-05-31T12:43:31","modified_gmt":"2024-05-31T11:43:31","slug":"uk-house-prices-marke","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-gb\/news\/uk-house-prices-marke\/","title":{"rendered":"UK house prices bounce back as market shows “surprising” resilience"},"content":{"rendered":"
Both monthly and annual growth was recorded in the latest Nationwide figures looking at UK house prices, in what has been described as a “rebound” in the face of ongoing affordability pressures. It demonstrates the overall strength that the UK housing market<\/a> continues to show, as buyer appetite remains high.<\/p>\n After taking into account any seasonal effects impacting the market, UK house prices<\/a> shifted upwards by 0.4% in May compared with the previous month, representing an annual increase of 1.3% in the year to April. This is an improvement on last month’s annual change, as momentum continues to build.<\/p>\n This brings the average UK property value (based on Nationwide’s sold price statistics) to \u00a3264,249 this month, compared with \u00a3261,962 in April.<\/p>\n The values that come from the likes of Nationwide and Halifax tend to be much lower than Zoopla and Rightmove estimates because the property portals use asking price data; while the lenders use data from properties sold with mortgages, excluding cash buyers as well as buy-to-let<\/a> transactions.<\/p>\n The picture across the market so far this year has been one of growing optimism, as lenders have brought in more competitive rates and products in response to predictions that the wider interest rate would fall. Unfortunately, the Bank of England is still yet to lower its rate, but this is not drastically affecting confidence, it seems.<\/p>\n As Andrew Harvey, senior economist at Nationwide, said: “I think we have been a little surprised actually by the resilience in the market because those affordability pressures have been quite significant.”<\/p>\n Strong wage growth along with falling inflation levels have played a big part in improving consumer confidence so far this year, the lender pointed out.<\/p>\n The figures from the latest house price index will not take into account any effects from the recent announcement that the next general election<\/a> would be held on 4th July. However, looking at past trends and changes, it seems general elections have less impact on UK house prices than wider economic factors.<\/p>\n Because of this, Nationwide has also released statistics detailing how the market has performed around the time of previous elections, as well as around the 2016 EU referendum which was arguably at least as significant for the market as a general election.<\/p>\n Its findings broadly found that past general elections have not produced volatility for UK house prices, or particularly altered any trends in the market.<\/p>\n It noted: \u201cIn the chart (below) we have indexed average house prices so they equal 100 in the election months in each of the years shown. We can then compare house price movements in the six months leading up to each election (t-6 to t-1) and following each vote (t+1 to t+6).”<\/p>\nWill UK house prices be affected by general election?<\/h3>\n