Annual house price growth in the UK has picked up slightly with the latest index showing growth of 2.5% in October, up from 2.3% in the previous month. The data from lender the Nationwide also shows that month on month prices increased by 0.2%, taking the average price of a home to £211,085.
Robert Gardner, Nationwide’s chief economist, said that the market is stable with the annual growth figure remaining within the 2% to 4% range since March of this year. ‘Low mortgage rates and healthy rates of employment growth are providing some support for demand, but this is being partly offset by pressure on household incomes, which appears to be weighing on confidence,’ he explained. He also pointed out that a lack of homes on the market is providing support to house prices.
It means that first time buyers are still likely to struggle to get on the housing ladder, according to Jeremy Duncombe, director of the Legal & General Mortgage Club. ‘House prices continue to rise annually and if we couple this with the costs of stamp duty, younger buyers clearly face a big challenge,’ he said.
‘Until the Government sets out a package of measures to build thousands more homes for our growing population and ease the stamp duty barrier on younger buyers and older home owners, the status quo will only continue. The Autumn Budget is just around the corner, and that provides a perfect opportunity for the Government to address the challenges facing Britain’s housing sector and get started on the path to a fairer market for all,’ he added.
