Nationwide - Growth accelerates again in July

The latest Nationwide House Price Index figures were released today.  The latest index shows that: -

• House prices climbed by 0.3% between June and July of this year, up from 0.2% the previous month.
• House prices were also up 2,1% year on year, with the annual rate of growth accelerating from 1.5% the previous month.
• This marks the fastest pace of house price growth since December 2022.

Guy Gittins, Foxtons Chief Executive Officer, said:

"Property market momentum has been building steadily so far this year and, despite macro headwinds and the surprise of a snap election, we're yet to see this momentum show any signs of slowing.

Bank of England data released earlier this week shows that monthly mortgage approvals are now sitting at consistently high levels as pent-up demand across the market has been released and this is helping to cultivate higher rates of house price growth across the UK market.

At Foxtons, we've also noted a significant increase in both buyer enquiries and seller instructions since the start of the year and this is now bearing fruit with respect to the level of sales completing.

Even if interest rates remain held at 5.25% today, this is unlikely to dampen the enthusiasm being shown by buyers and sellers, who are adopting a 'life must go on' attitude and pressing on with their plans to transact."

CEO of Yopa, Verona Frankish, commented:

"Whilst the summer sun may have only just made an appearance, the UK property market has been heating up for quite some time now and the uplift in buyer activity seen at the start of the year is finally starting to cultivate a consistent level of positive house price growth, with the market posting its best performance since December 2022.

Regardless of whether rates are held or cut, homebuyers and sellers remain keen to make their move in 2024 and we expect that the second half of the year will prove even more fruitful."

Lomond CEO, Ed Phillips, commented:

"The housing market has already put in an incredibly resilient performance so far this year and we've seen both buyers and sellers return to the fray, enticed by the greater degree of stability that has come as a result of a hold on interest rates and the anticipation of reductions in H2 2024.

This uplift in activity has helped to stabilise house prices and we've now seen a consistent level of growth materialise in recent months.

Whilst hopes of an interest rate cut later today may be a tad premature, we anticipate this growing market momentum to build further over the remainder of the year and it very much looks as though an Autumn rates reduction could well light the touch paper for further market prosperity."

Director of Benham and Reeves, Marc von Grundherr, commented:

"The fastest rate of house price growth since December 2022 demonstrates just how much market conditions have improved so far this year and it's clear that buyer confidence is high, despite the fact that interest rates are yet to come down.

For those planning to make their move in 2024, now is the time to do so, as buyer demand is only likely to increase when interest rates are finally cut, making it very much a sellers market at present."