2.4% rise comes despite dip in August
House prices have risen on an annual basis by the fastest rate in since December 2022, according to Nationwide’s latest index.
The latest figures show prices were 2.4% higher in August compared to the same month last year, compared to 2.1% annual growth in July. It is the highest annual figure since the 2.8% recorded in December 2022 in the wake of Liz Truss’ mini-budget, which led to borrowing costs spiking.
The annual rise comes despite a 0.2% drop in prices in August compared to the previous month.
Robert Gardner, chief economist at Nationwide, said: “While house price growth and activity remain subdued by historic standards, they nevertheless present a picture of resilience in the context of the higher interest rate environment and where house prices remain high relative to average earnings (which makes raising a deposit more challenging).
“Providing the economy continues to recover steadily, as we expect, housing market activity is likely to strengthen gradually as affordability constraints ease through a combination of modestly lower interest rates and earnings outpacing house price growth.”
>>See also: Top 50 Housebuilders 2023: The calm before the storm
Nationwide also this month used Energy Performance Certificate data to try and determine whether buyers pay a premium for more energy efficient homes.
It said its analysis shows buyers of properties with an EPC of A or B pay a premium of 2.8% compared to properties rated B (the most common rating). It found little difference for properties rated C or E compared with D.
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