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Property prices were up in May according to Nationwide – though not by much.
Statistics from the lender show that average prices rose by 0.3% to leave the typical home worth £167,208. The increase comes after a slight fall in April, and contributes to a rise of 0.6% for the quarter – often taken as a more reliable measure.
A prestigious international body has said that UK interest rates should rise soon.
The Organisation for Economic Cooperation and Development (OECD) has urged the Bank of England to follow the example of the European Central Bank, and act to raise rates by the end of the year. Economists fear that inflation may become entrenched, as workers demand higher wages to cope with rising prices.
Homeowners still take an upbeat view of prospects for the property market.
That’s one conclusion to emerge from a survey by estate agent Your Move. According to the research, 8 out of 10 homeowners expect house prices to rise in the next 5 years, with just 11% anticipating a fall.
Home improvements are in the air – though too late for troubled DIY chain Focus Do It All. Rivals Wickes, more at the no-frills end of the market and catering for the building trade too, are taking over a clutch of stores.
Now’s the time of the year when the thoughts of householders traditionally turn to extensions and refurbishments. But current difficulties in the housing market are giving added impetus to the plans of many of us.
A flurry of up-market house sales in London and the South East has pushed up average house prices.
That’s according to the trusted LSL Property Services/Acadametrics Index, which claims to take into account every transaction in England and Wales.
Many homeowners will be watching the housing market carefully this month as they debate whether now is a good time to move or to borrow additional funds.
The latest survey from RICS (Royal Institute of Chartered Surveyors) headlines a “broad based improvement” in the property market, with signs of increased activity. More surveyors reported a rise in new instructions in April, while viewings, sales and newly agreed sales all picked up – albeit modestly.
Average house prices have continued their “modest decline” according to the latest monthly survey from Halifax. But the market is benefitting from a number of factors – including the affordability of mortgage payments.
The lender’s figures show that house prices fell 1.4% in April, leaving the price of a typical home at £160,395. The fall contributes to an annual decline of 3.7%. Prices remain above levels seen in the spring of 2009 – but down by as much as a fifth on those at the peak of the market in 2007.
Interest rates have been kept on hold at 0.5% for the 26th time by the Bank of England’s Monetary Policy Committee – with few expressing much surprise at the news.
In recent days fresh doubts have surfaced about the UK economy. With consumers voting with their wallets, surveys have told a tale of slowing growth in sectors such manufacturing, construction and services.
House prices fell by 0.2% in April, according to the Nationwide. But the lender predicts that any further decline in the months ahead will be modest.
A three monthly comparison, which is said to give a better indication of the underlying trend, shows a 0.5% gain over average price levels recorded in the winter months.
It seems that even the Royal Wedding is unlikely to put the zip back into the UK economy. And that means that interest rates are set to be kept on hold yet again this week.
Consensus is growing among economists that the recovery is still too fragile to risk a rate rise while others think the economy’s lacklustre performance means that inflation will drop of its own accord.
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