House price growth remains solid in February - Nationwide

House prices have remained resilient in recent months despite the challenges facing the economy. The lack of supply is one reason but so, too, is the stamp duty deadline, which has caused a rush of transactions. Transaction levels may drop off in the late spring as a result. Overall, though, with mortgage rates getting competitive once again, there are reasons to be hopeful despite the impact of the Budget and inflation edging up. The hope is that the rise in inflation is brief and that the base rate can be brought down sooner rather than later.

A plateau in house values isn’t a bad thing and I’m sure they will continue to rise in the near future. The cost of borrowing figures are the ones to watch for home owners and buyers alike. Better interest rates entice borrowers, which increases competition, ultimately driving property prices higher. As rates improve this year, we’ll see a knock-on effect on house values.

Their is an air of positivity and pent up demand in the housing market, buoyed in particular by the expectation of rates reducing. To see house prices level off in the early months of the year comes as no surprise, but with lenders reducing rates and warmer months upon us this is likely to change. The housing market continues to show its resilience.

News of a steady 0.4% increase in February will be welcome news for many homeowners. However the figure may well be received as a bit of a damp squib by those homeowners trying to make life more comfortable with later life mortgage products. Lenders seem to be maintaining their stance of stunting any growth in property values to the detriment of those needing it most. Borrowers looking to raise the maximum size loan on later life products such a lifetime mortgage, are being hindered by seemingly overly cautious lending decisions stunting borrowers ability to release capital and make retirement what they want or for many, need it to be.