United Kingdom: House prices rise at a softer, but still robust, pace in April
According to the Nationwide Building Society, house prices expanded 0.3% in month-on-month seasonally-adjusted terms in April, which followed March’s 1.1% increase.
On an annual basis, house prices increased 12.1% in April, which followed a 14.3% rise in March. House prices in April continued to be boosted by tight home supply, a strong labor market and changes in housing preferences in the aftermath of pandemic.
On the outlook, Robert Gardner, chief economist at Nationwide, stated:
“We continue to expect the housing market to slow in the quarters ahead. The squeeze on household incomes is set to intensify with inflation expected to rise further, perhaps reaching double digits in the quarters ahead if global energy prices remain high. Moreover, assuming that labour market conditions remain strong, the Bank of England is likely to raise interest rates further, which will also exert a drag on the market.”