Housepresso 6 June 21
All you need to know about the housing market this week in one quick hit
House Prices increase by £4,000 in May
The space race is on, as annual House price inflation hits 10.9% or £1,994 per month according to the latest Nationwide House Price Index, with an increase of £4,000 in May. This means that the average house in the UK earns more than the homeowner who lives in it. Nationwide believes that the Stamp Duty Holiday, working from home and COVID-19 has led to a 'race for space' as households seek bigger homes and more outside space in less urban areas.
Mortgage approvals in April 2021 were 438% higher than in April 2020. Homebuyers have certainly responded to the extension of the Stamp Duty Holiday in March 2021 and with the available stock in short supply house prices are likely to continue to increase.
Mortgage Rates - floating up, fixed down
Average mortgage rates remain very low by historic standards, but as the economic recovery gathers pace and assuming the current dawn is not a false one, the chances of an increase in Bank Rate rises so perhaps now is the time to lock in a long term fix.
Will rising house prices lead to increased mortgage rates?
The Bank of England is monitoring house prices assessing whether the current house price boom needs to be kept in check with an increase in bank rate.
Read more to find out what an increase in Bank Rate could mean for you