Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

House prices fall at fastest pace in nearly 14 years, says Nationwide

by June 1, 2023
June 1, 2023
House prices fall at fastest pace in nearly 14 years, says Nationwide

UK house prices fell at their fastest annual pace for nearly 14 years in May, the Nationwide has said.

The building society said prices in the year to May dropped by 3.4%, the biggest decline since July 2009.

It also warned that more rises in mortgage interest rates could hit the housing market.

Mortgage rates have risen recently on expectations that the Bank of England will have to lift interest rates again because of stubbornly high inflation.

As a result, the Nationwide said “headwinds to the housing market look set to strengthen in the near term”.

House prices edged down by 0.1% in May itself, the Nationwide said, and the average property price now stands at £260,736.

Average prices are still 4% below their August 2022 peak, it added.

A drop in house prices would generally be welcomed by first-time buyers, who have watched property values continue to climb in recent years, even during the pandemic.

However, rising interest rates means that mortgage costs are now higher than many people looking to get on the housing ladder might have planned for.

New figures from the Bank of England showed net mortgage lending slumped in April, if the period since the beginning of the Covid pandemic is excluded.

Net mortgage approvals for house purchases fell to 48,700 from 51,500 in March.

Official figures last week showed the UK inflation rate – which charts rising prices – slowed in April by less than expected to 8.7%.

That led analysts to predict that the Bank of England will have to raise interest rates above their current level of 4.5% to as high as 5.5% to try to slow price rises.

In the wake of the inflation data, a range of lenders increased their mortgage interest rates, with Nationwide making the most significant move with a rise of up to 0.45 percentage points.

Figures released earlier this week also showed that nearly 10% of UK mortgage deals have been taken off the market since last week.

Nationwide noted that interest rates were also projected to remain higher for longer.

“If maintained, this is likely to exert renewed upward pressure on mortgage rates,” said Robert Gardner, Nationwide’s chief economist.

However, he said that the building society was not expecting a dramatic downturn in the housing market, given that “labour market conditions remain solid and household balance sheets appear in relatively good shape”.

Recent figures have indicated that the number of property sales has been falling. According to HM Revenue and Customs data released on Wednesday, the number of transactions in April was 82,120, down 25% from a year earlier.

Read more:
House prices fall at fastest pace in nearly 14 years, says Nationwide

0
FacebookTwitterGoogle +Pinterest
previous post
Prime Minister calls for UK to act as global leader in AI regulations amidst rising fears
next post
American Express Restaurant grant programme returns to help London’s small, independent operators with funding at critical time for sector

You may also like

Passport workers start five week strike as Brits...

April 3, 2023

Labour to ease building rules and challenge ‘nimbys’,...

July 8, 2024

Commercial Property Values Poised for Growth as Office...

May 18, 2024

How to Make Business Travel Easier

September 9, 2022

Lilac Review Uncovers Barriers Faced by Disabled Entrepreneurs,...

May 20, 2024

End of cash? Barclays says record 91 per...

February 17, 2023

Retailers Rush to Secure Christmas Stock Amidst Soaring...

June 3, 2024

Simon Cowell backs new streaming platform launched to...

October 23, 2023

How to Choose The Best Business Coach?

September 27, 2024

Brits set to plunge themselves into £3.7bn worth...

November 8, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • CHARLIE KIRK: Republicans must seize Gen Z moment or risk losing an entire generation

      July 26, 2025
    • Technology in Hospitality: Innovations Shaping Guest Experiences

      July 26, 2025
    • British Factories Are Getting Smarter—But It’s Not Where You Think

      July 26, 2025
    • Navigating Risk and Reinvention: A Conversation with Krishen Iyer

      July 26, 2025
    • Budget-Friendly Compliance Tips for Growing Operations

      July 26, 2025
    • Europeans meet with Iranian officials face-to-face for first time since Israel, US bombings as sanctions loom

      July 26, 2025

    Categories

    • Business (8,580)
    • Investing (2,151)
    • Politics (16,204)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved