View more on these topics

Nationwide reports surprise house price bounce

Nationwide has revealed a “surprise bounce” in its latest House price Index as prices rose by 0.9 per cent in March.

The mutual revealed that, according to its Index, house prices increased by 0.9 per cent in March, what it says is its highest level of activity since May 2008.

It says the average UK house price is now price £150,946, up from £147,746 in February. But although the monthly averages saw a bounce, year-on-year averages are still down by 15.7 per cent.

Nationwide chief economist Fionnuala Earley says: “Spring brought a surprise bounce to house prices in March.

“The moderation in the annual rate of fall is somewhat distorted by conditions last year and so it would be unwise to draw strong conclusions from the significant slowdown in the annual rate of fall. Equally, while the rise in prices in March is welcome, it is far too soon to see this as evidence that the trough of the market has been reached.

The building society says the measures taken by the Bank of England will take time to work through into the housing market before anyone will see a sustained recovery in house prices.

Earley adds: “Mortgage approvals have started to increase after reaching levels which were thought out of the question two years ago. February saw the number of monthly approvals increase to 37,900, its highest level since May 2008. This is still far below the long run average of the series, which started in 1993 of 94,000 per month, but is a significant improvement on the average for the second half of 2008, which was only 32,000.

“The upturn is welcome and is certainly a signal that there is some movement in the market.”

Recommended

2015: a divergence in economic policy?

As the US continues to confound growth expectations and the eurozone’s ‘will they, won’t they’ saga has finally concluded, what are the implications for global markets? James Dowey, Neptune’s chief economist, puts forward his outlook for 2015 and the key considerations for investors.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com