UK house price growth shows signs of ‘moderation’ as average London home sells for more than £362,000, Nationwide says
UK house prices showed more moderate growth in March, up by 0.4 per cent compared to 0.7 per cent in February and 0.8 per cent in January.
But the new Nationwide report indicates that on an annual basis house prices were 9.5 per cent higher than in March 2013, putting them around three per cent below the 2007 peak.
“There is little doubt that the recovery in the housing market is now firmly established,” said Robert Gardner, Nationwide’s Chief Economist, “with activity levels picking up and house prices recording their fifteenth successive monthly increase in March. There are some tentative signs of moderation, but viewed in annual terms, price growth is continuing to run at a robust pace.”
“This will not completely comfort those worried about a house-price bubble,” said Rory Penn, partner of London estate agency VanHan. “However, there are signs that growth is moderating This cooling will only be moderate, all things considered, given the continued strong demand from buyers combined with a structural lack of supply.