Nationwide – House price growth accelerates again in June

Ruth Beeton, Co-Founder of Home Sale Pack, says:

“Market activity remains somewhat subdued and this is largely down to the fact that mortgage rates remain substantially higher than they have been in previous years. However, there’s no doubt that momentum is starting to build and not only are house prices up on an annual basis, but this rate of positive growth is starting to accelerate.

We expect this positive house price growth performance will only strengthen as the year progresses, particularly now that it’s a matter of when, not if, interest rates are cut.”

Director of Benham and Reeves, Marc von Grundherr, commented:

“The latest house price figures provide concrete evidence that the market is very much heading in the right direction and although it remains a case of not running before we can walk, we look set for a far more prosperous year both with respect to house price growth and overall market activity levels.

While this week’s general election is unlikely to slow this momentum, there’s a good chance it could add to it, depending on who comes out on top and what housing market initiatives they introduce.”

CEO of Yopa, Verona Frankish, commented:

“It’s clear that while higher mortgage rates continue to restrict market activity to an extent, a hold on the base rate since last September has provided the stability needed to steady the ship and provide a strong foundation for market growth.

With a cut to interest rates looking highly likely in the coming months, the expectation is a further boost to buyer activity and this is likely to increase the speed at which house prices are rising.”