UK property prices gain momentum in July, says Nationwide
House prices in the UK gained momentum in July, rising at an average rate of 2.5% higher than July 2017. According to the latest report by Nationwide, property prices increased 0.5% faster than the 2% rise in June.
The gaining momentum in house prices in July is significantly higher than the 1.9% rise forecast by economists in a Reuters poll.
Economists are not deterred that property prices in Britain will be negatively impacted by the recent interest rate rise by the Bank of England. Interest rates increased for just the second time in a decade recently, from 0.5% to 0.75%.
Despite being the highest level since March 2009, Nationwide economist Robert Gardner, said the interest rate hike is likely to only have a modest impact on the property industry as the majority of mortgages issued in recent years have been on fixed rates.
“There was a slight uptick in annual house price growth in July to 2.5%, from 2.0% in June. Nonetheless, annual house price growth remains within the fairly narrow range of 2-3% which has prevailed over the past 12 months, suggesting little change in the balance between demand and supply in the market,” Gardner commented.
“Looking further ahead, much will depend on how broader economic conditions evolve, especially in the labour market, but also with respect to interest rates,” he added.
The Nationwide economist expects that there will continue to be an overall rise of around 1% in house prices over the course of 2018.
With house prices continuing to rise at a modest rate across the UK, now is an attractive time to both buy and sell property. With interest rates still being relatively low, appealing fixed rate deals are still available to borrowers.