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Nationwide August 24 HPI: "The important annual rate of growth improved in August, highlighting the continued resilience of the property market"

ended 30. August 2024

This morning, the Nationwide revealed that UK house prices fell 0.2% month on month in August, while the annual growth rate picked up to 2.4%, from 2.1% in July. This was the fastest pace of annual growth since December 2022. Newspage asked experts for their thoughts, below.

8 responses from the Newspage community

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Stephen Perkins
Managing Director at Yellow Brick Mortgages
Take the monthly drop with a pinch of salt as the monthly numbers are always volatile. The focus should be on the fact that the annual growth figure was the fastest since December last year. Enquiry numbers were steady in August despite the expected drop off due to summer holidays, which overall has seen house prices remain firm. Stability is very welcome after the last few years of turmoil.
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Michelle Lawson
Director at Lawson Financial
The property market has remained consistent which shows the resilience it has against a crash some of the doom merchants have forecast. Halifax’s first time buyer boost yesterday will help this to continue. We need a sensible Budget to maintain the status quo and careful consideration of the implications of over taxation.
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Mark Eaton
COO at April Mortgages
The figure of more importance is the annual figure and that shows improved growth and resilience. Monthly numbers are volatile by default. Overall, it was a busy August and the base rate cut on the first of the month may have contributed to this increased activity. However, uncertainty persists with potential inflation rises and the upcoming Autumn Budget, which borrowers are likely considering. We've observed that borrowers increasingly value not just mortgage rates but also the certainty that comes with fixed payments. After two years of market volatility, many are questioning whether they want to face rate fluctuations every few years. Long-term fixed rates offer protection against economic uncertainty, providing peace of mind and flexibility in financial management - especially important as mortgages are often the largest monthly expense.
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Craig Fish
Director at Lodestone Mortgages
Despite the slight drop, August remained steady despite it being the summer holidays, and house prices have continued along the same path of resilience. It continues to be a buyers' market for the time being, but the winds of change are increasing and may arrive just in time for the change in seasons. As we head into Autumn with optimism and lenders continue to reduce rates, the market will quickly become a sellers' market, especially if we see a further base rate reduction from the Bank of England.
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Chris Barry
Director at Thomas Legal
August was busier than last year, and if you strip out the crazy post-Covid SDLT banana years, August 2024 saw more activity than 2017, 18 and 19. The activity we are seeing, however, is very much at the core end of the market and we have seen far less completions in August at the higher end of the market, which is likely to bring down the average house price. Positivity around activity should translate into a busy autumn market as property professionals and clients return from their summer trips. Supply is, and has been, strong for a while so the increased demand triggered by falling mortgages rates is the reason for a positive end to the summer.
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Gabriel McKeown
Head of Macroeconomics at Sad Rabbit - Substack Newsletter
As the property market waltzes to the rhythm of falling interest rates, an improved inflation outlook and economic stability have set the stage for a more vibrant and dynamic market. The combination of a competitive mortgage landscape and the potential for further interest rate cuts has created an environment ripe for increased buyer activity. However, consumer confidence will play a vital role in dictating the direction of house prices, with the cost of living crisis still casting a long shadow over the property market. Furthermore, the upcoming Autumn Budget could be a Pandora's box for house prices, as while it holds potential for positive change, it also risks putting more pressure on an already fragile market. Yet, in the face of potential policy shifts and economic uncertainty, consumers should focus on what they can control by taking advantage of competitive mortgage rates and being financially prepared to weather any storm.
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Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
The drop in August is a seasonal blip on the road to recovery. The property market is recovering nicely, with increasing demand for smarter and more energy-efficient homes. With mortgage rates becoming increasingly competitive, I expect the remainder of this year to see further property price growth.
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Justin Moy
Managing Director at EHF Mortgages
As a month, August's data is never the most accurate given the usual holiday patterns. August has seen steady enquiry numbers from those looking to move, typically around £400k-£750k, but there have been pockets of increased supply across Essex, which are challenging prices. With mortgage rates continuing to slip downwards we may see increased activity in September, for those looking to move before Christmas if possible.