The latest Nationwide House Price Index shows an annual increase in property prices of 5.7% - the highest level of growth since February 2015. The average cost of a UK home now sits at £200,251.
A sharp uplift in mortgage approvals and purchases over recent months is partly due to the introduction of higher rates of stamp duty on second homes – which take effect as of today – and this temporary boost is likely have put upward pressure on prices, according to Nationwide’s Chief Economist, Robert Gardner.
The report predicts that the pace of growth could ease off over the summer months, but equally the restricted supply of properties could ‘keep the demand/supply balance tilted in favour of sellers’. That pressure on prices is backed by figures from the Royal Institution of Chartered Surveyors which shows housing stock on estate agents’ books is close to a 30-year low.
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Annual house price growth increases