Nationwide House Price Index August 2018

Brian Murphy, Head of Lending for Mortgage Advice Bureau comments:

“The report issued by the Nationwide this morning is based on lending for house purchases at post survey approvals stage, so provides us with a reliable bellwether in terms of the UK housing market over the last month from one of the country’s biggest mortgage lenders.

Today’s figures indicate a slight month on month decrease in average price, which one might suggest does highlight the volatility of monthly price movements, as the year on year figure still shows a positive reading very much in line with annual market forecast issued at the beginning of 2018. As we enter the final key selling season of the year, which is particularly important for those who want to move into their next home before Christmas, it’s quite normal for those vendors whose properties have perhaps stuck on the market over the summer to review their asking price. This is a very much standard practice, and if indeed this trend begins to emerge again this year over the next few weeks, would be seen by many in the industry as part of a normally functioning market.

Any major changes in prices over the coming months could probably be driven by an influx of stock coming to market which, given the shortage to date as regularly reported by RICS and other indices. This has been, in part, driven by the fact that many would-be vendors don’t actually need to move, hence the reason why discretionary sellers are so few and far between in many regions across the UK. This has removed a significant swathe of homes from the market as many who might, in other circumstances, decided to test the water, are currently ‘sitting tight’ to see what evolves in terms of the current political and economic climate.”

To read the full report click here