News
House prices increase
House prices have increased by 1% month on month in April according to the Nationwide
House Price Index leaving prices 10.5% higher than a year earlier but remaining around 10% below the October 2007 peak.
The strong rebound in house prices over the last year has taken place within the context of a subdued mortgage market with the number of mortgage advances across the industry still well down on pre crisis ‘norms according to Martin Gahbauer Chief Economist at the Nationwide.
An important driver of rising house prices has been the low level of properties for sale as many homeowners and buy – to –let landlords continue to wait for prices to recover to peak 2007 levels.
Low mortgage rates have been supportive of this wait and see approach as many landlords have seen mortgages revert to base rate trackers and are earning higher net rental income than a few years ago and so can afford to wait.
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