Nationwide house price index story- august
Out just now, show subdued results.
https://www.nationwide.co.uk/media/hpi/reports/house-price-growth-remained-subdued-in-august
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House prices edged higher in August, but the more interesting story is how resilient buyer demand has been. August was surprisingly strong for enquiries at Yellow Brick Mortgages and we didn’t see the usual summer holiday drop-off, despite continued uncertainty around mortgage rates and the wider economy.
Modest house price growth alongside improving underlying affordability could actually be good for the market. It gives incomes an opportunity to catch up with property prices while people continue to buy and move home.
Modest house price growth alongside improving underlying affordability could actually be good for the market. It gives incomes an opportunity to catch up with property prices while people continue to buy and move home.
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Subdued price growth is less concerning for specialist property finance than a market in which properties take longer to sell. A 0.2% monthly rise and 1.6% annual growth suggest that values are broadly holding, which can support valuations and exit plans. But that does not mean completed developments, refurbished properties or homes in broken chains will find buyers quickly.
Recent Bridging Loan Directory reporting and contributor evidence point to greater interest in chain-breaking and development-exit finance as sales periods lengthen. That creates demand for bridging finance, but also makes the exit more important. Lenders will want a realistic sale price, sufficient time, evidence of marketing and a contingency if the property does not sell as expected.
Stable headline values help, but liquidity matters as much as price.
Recent Bridging Loan Directory reporting and contributor evidence point to greater interest in chain-breaking and development-exit finance as sales periods lengthen. That creates demand for bridging finance, but also makes the exit more important. Lenders will want a realistic sale price, sufficient time, evidence of marketing and a contingency if the property does not sell as expected.
Stable headline values help, but liquidity matters as much as price.
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Nationwide’s figures suggest that house prices are holding up, but that does not necessarily mean buyers are feeling confident. I have seen a drop in purchase activity, with more people delaying decisions or taking longer to proceed because of mortgage costs and wider economic uncertainty.
A 0.2% monthly increase and annual growth of 1.6% point to a stable market rather than a booming one. Slower price growth could ultimately improve affordability by allowing wages to catch up, but buyers also need confidence that their monthly payments will remain manageable.
The housing market is not falling; it is hesitating.
There is still demand from people who need to move, but many discretionary buyers appear prepared to wait. A sustained recovery in transactions is therefore likely to depend less on house prices and more on mortgage rates settling and buyers regaining confidence.
A 0.2% monthly increase and annual growth of 1.6% point to a stable market rather than a booming one. Slower price growth could ultimately improve affordability by allowing wages to catch up, but buyers also need confidence that their monthly payments will remain manageable.
The housing market is not falling; it is hesitating.
There is still demand from people who need to move, but many discretionary buyers appear prepared to wait. A sustained recovery in transactions is therefore likely to depend less on house prices and more on mortgage rates settling and buyers regaining confidence.
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Nationwide’s subdued results echo what we are seeing on the ground. Subdued appetite from buyers at all levels, to engage with the market as a result of uncertain interest rates combined with the usual summer lull and the political silly season combined with the arrival of a new PM in Number 10.
It is difficult to see much changing in the coming months, as buyers and vendors keep their powder dry and await the Budget signposted for the end of October and the economic and political gossip which will inevitably accompany it.
Vendors hoping to sell before Christmas should act now to make sure their home stands out from the local crowd in order to take advantage of the return to business as usual following the summer holidays.
It is difficult to see much changing in the coming months, as buyers and vendors keep their powder dry and await the Budget signposted for the end of October and the economic and political gossip which will inevitably accompany it.
Vendors hoping to sell before Christmas should act now to make sure their home stands out from the local crowd in order to take advantage of the return to business as usual following the summer holidays.
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House prices are moving at a fraction of the pace of average pay growth, which means the gap between wages and property values is quietly narrowing without anyone watching their equity fall through the floor. Energy costs and global events are the drag, keeping confidence low and buyers cautious for months on end. Nothing changes until rates ease and people feel steadier about their finances, so expect this same slow, low-drama market to carry on right through autumn.
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Nationwide's index shows the property market has continued to slow since the Middle East crisis, and buyers lack confidence about their next move. While activity has picked up over the last few weeks, it will take months to filter through, and a rough government budget at the end of October could really kill off the sector. Incentives are required, not more sticks to beat an already fragile buyer population.
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What's interesting isn't the headline growth figure, it's what steady prices are doing to loan to value. When your mortgage balance has fallen and the property has held its value rather than dropped, plenty of homeowners are quietly moving into a cheaper rate bracket. I've had remortgage clients move from 75% to 60% loan to value purely because prices haven't fallen, and that alone knocks a real chunk off their new rate.
Lenders are loosening affordability too. Nationwide's Helping Hand stretches to six times income for first time buyers, and newer names like April Mortgages go even further. So even in a subdued market, some buyers can borrow more than a year ago.
I think uncertainty is holding the market back more than affordability, whether that's the Budget, rates or global events. Get some stability on both and I'd expect pent up demand to come through fast, though predicting when is a mug's game. For now it's about being ready to move, not waiting for a green light.
Lenders are loosening affordability too. Nationwide's Helping Hand stretches to six times income for first time buyers, and newer names like April Mortgages go even further. So even in a subdued market, some buyers can borrow more than a year ago.
I think uncertainty is holding the market back more than affordability, whether that's the Budget, rates or global events. Get some stability on both and I'd expect pent up demand to come through fast, though predicting when is a mug's game. For now it's about being ready to move, not waiting for a green light.