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UK house prices saw the strongest annual surge since 2004 in March, figures from Nationwide showed on Thursday.
UK house prices rose 14% yearly in March, accelerating from a 13% climb in February.
On a monthly basis, house prices rose 1.1% to £265,312 from £260,230 in February. Prices had risen 1.7% monthly in February.
The annual surge, Nationwide analyst Robert Gardner said, was the strongest growth since November 2004.
‘The housing market has retained a surprising amount of momentum given the mounting pressure on household budgets and the steady rise in borrowing costs. The number of mortgages approved for house purchase remained high in February at around 71,000, nearly 10% above pre-pandemic levels. A combination of robust demand and limited stock of homes on the market has kept upward pressure on prices,’ Gardner explained.
‘Nevertheless, we still think that the housing market is likely 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 if this feeds through to mortgage rates.’
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