You are here: Home - Mortgages - First Time Buyer - News -

House prices tough to gauge during coronavirus, Nationwide warns

0
Written by: Lana Clements
01/05/2020
House price growth reached its highest level since February 2017 before the coronavirus outbreak, but values could be difficult to measure in the coming months, Nationwide Building Society has warned.

Prices jumped 3.7 per cent annually in April and were up 0.7 per cent month-on-month, according to the mutual.

But the lender warned the impact of the pandemic and the subsequent UK lockdown will not be fully captured in the month’s data, which is made up of mortgage approvals that lags applications.

The average UK price now stands at £222,915.

Nationwide chief economist, Robert Gardner, said a lack of transactions in the coming months will make gauging house price trends difficult and he suggested there may also not be enough data to create the monthly index.

He added: “The medium-term outlook for the housing market is also highly uncertain, where much will depend on the performance of the wider economy.”

‘Prices will soften’

Simon Gammon, managing partner at Knight Frank Finance, said: “Though it’s too early to tell in the data, UK house prices will soon inevitably show signs of softening.

“How much that extends will depend on the length of the lockdown and any government intervention to support the market. Our current forecasts indicate house prices may decline as much as three per cent this year, before rebounding in 2021.

“This will be offset to some extent by the availability of cheap credit, which is improving every day.

“Banks that had been in retreat just weeks ago have realised the lockdown is likely to begin loosening soon and are trying to re-establish their pipelines of new business by enticing customers.

“Social distancing means conducting in-person valuations will remain tricky for some time, so any buyer hoping to secure a mortgage would do well to use time in lockdown to get their application in early to avoid being at the back of the queue when restrictions ease.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Stamp Duty receipts rise ahead of lockdown measures

HMRC collected £1.8bn in residential Stamp Duty Land Tax receipts in the first quarter of the year, a six per...

Close