In a notable improvement for the property market, Nationwide has reported a 0.4 percent increase in average house prices in the UK in May. This signifies a 1.3 percent rise in house price growth since April, with prices now averaging £264,249, up from £261,962.
According to Robert Gardner, the chief economist at Nationwide, consumer confidence in the market has strengthened, supported by steady wage increases and lower inflation. This increase in confidence has been linked to the relaxation of mortgage rates and the anticipation of several interest rate cuts in the upcoming months.
The resurgence of buyer confidence has been evident through the rise in mortgage approvals. Despite the announcement of a snap general election, estate agents have seen a surge in weekly new applicant enquiry numbers, reaching a five-year high.
Analysts have examined whether this election will impact the property market, with Robert Gardner noting that past general elections have not significantly affected house prices. Guy Gittins, CEO at Foxtons, also expressed optimism about the continued growth of the market, expecting further market momentum over the summer months.
With these positive developments, it appears that the property market is on an upward trajectory. This could be an opportune time for both buyers and sellers as the market continues to gain momentum.
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