House prices pick up, according to Nationwide survey
The 0.9 per cent year-on-year rise takes average prices to £165,586
Wednesday 01 May 2013
House prices recorded their strongest annual increase in more than a year in April, amid further signs that the market is seeing a pick-up, Nationwide reported today.
The 0.9 per cent year-on-year rise took average prices to £165,586, and activity is likely to strengthen further in 2013, the building society's latest study said.
On a month-on-month basis, prices dipped by 0.1 per cent following a flat March.
However, the study pointed to wider evidence that the market is seeing an improvement, particularly the first-time buyer sector, which makes up around two-fifths of loans to home buyers.
Mortgage approvals for house purchase have also been averaging 53,000 a month this year so far, compared with 51,000 a month in 2012.
On a quarterly basis, prices rose by 0.5 per cent in April, continuing a trend of increases which started last October.
Quarterly figures are often seen as giving a better indication of underlying house price trends as they smooth out monthly volatility.
Mortgage availability has increased sharply since the Government launched a scheme called Funding for Lending last August, which gives lenders access to cheap finance to help borrowers.
Another scheme called Help to Buy, which will give more people a helping hand to buy a home with a deposit as low as 5 per cent, is also in the pipeline.
Robert Gardner, Nationwide's chief economist, said: "There is some evidence that activity and prices have gained some momentum in recent months.
"The number of mortgage approvals has edged up from the levels prevailing last year and there are reasons for optimism that activity levels will continue to strengthen in the months ahead."
Property analyst Hometrack reported earlier this week that market conditions in London have improved to levels not seen since 2007.
Hometrack also found evidence that the market is improving across the country, with homes taking a week less to sell on average than they did at the start of the year.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Shock poll shows voters believe Ukip is to the left of the Tories
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
£65000 - £80000 per annum: Recruitment Genius: Finance Director required to jo...
£15000 - £25000 per annum: Recruitment Genius: This is a unique opportunity fo...
£50000 per annum + 26 days holiday,pension: Ashdown Group: A highly successful...
£27000 per annum + pension + holidays: The Jenrick Group: A Quality Technician...