The UK property market is showing clear signs of a rebound after what appears to have been a blip in the longer-term growth trend.
The annual house price growth picked up in July, rising from 2.1% in June to 2.4% in July, while monthly prices increased by a solid 0.6% – a notable turnaround from the 0.9% decline recorded in June.
This return to positive momentum has pushed the average house price to £272,664, representing a monthly increase of over £1,000.
“July saw a modest pick-up in the rate of annual house price growth to 2.4%, from 2.1% in June. Prices increased by 0.6% month on month, after taking account of seasonal effects,” said Robert Gardner, Nationwide’s Chief Economist.
“Looking through the volatility generated by the end of the stamp duty holiday, activity appears to be holding up well. Indeed, 64,200 mortgages for house purchase were approved in June, broadly in line with the pre-pandemic average, despite the changed interest rate environment.”
Particularly encouraging for potential homebuyers is that despite this price recovery, the UK house price-to-earnings ratio remains at approximately 5.75 – its lowest level in over a decade – suggesting that homes remain relatively affordable by historical standards even as the market begins to strengthen again.