House prices rise as 2 in 5 consider moving home
The Nationwide released their house price index for April 2022 this morning
What they said
Average UK house price £267,620
Annual house price inflation 12.1%
Survey reveals 38% actively looking to move home or considering a move
Although house price growth slowed to 0.3% in April and to 12.1% in the year to April 2022, however, it is still the 11th time in the past 12 months that annual house price inflation has been in double digits.
The Nationwide commented that robust labour market conditions have kept demand high with mortgage approvals remaining above pre-COVID pandemic levels and whilst the number of homes for sale remains relatively low, house prices continue to rise.
The cost of living increases have yet to impact those in a position to buy a home. However, not everyone is in a position to buy a home and wider consumer confidence regarding their own financial situation has dropped to levels last seen during the global financial crisis more than a decade ago.
The Nationwide has, like us, been surprised that housing demand has remained so buoyant following the end of the stamp duty holiday and in the face of rising living and mortgage costs. Therefore they surveyed around 3,000 consumers across the UK to gain a better insight into what is going on.
The results were surprising. Overall 38% of those responding to the survey stated that they were either in the process of moving or considering a move.
London had the most people considering a move, almost half and Wales the lowest one in four. However, even the 1 in 4 in Wales is very high when we consider that across the country less than 5 homes in every hundred sell each year.
The race for space is still on
The survey also reported that around 1 in 4 are looking to move to a larger home and most are looking to move to a less urban environment.
Housing market to slow in the coming quarters?
Nationwide believes that the pressures on household finances will cause the housing market to slow in the coming quarters.
W have sympathy with that view, but demand is so high at the moment that we are not predicting a major slowdown in the next 6-12 months.