 |
 |
|
Nationwide House price Index,29th April 2010
|
 |
|
Commenting on the figures Martin Gahbauer,
Nationwide's Chief Economist, said:
“The price of a typical UK property rose by a
seasonally adjusted 1.0% month-on-month (m/m) in
April, leaving house prices 10.5% higher than a year
earlier. Over the lifetime of the last Parliament (May
2005 to April 2010), house prices have risen by 6.7%.
This compares to a 13.5% increase in the consumer
price index, the official target measure of inflation.
“April’s figures show the first double-digit annual
growth in UK house prices since June 2007. The
year-on-year rate in this month’s figures, however,
received an additional boost from the fact that April
2009 was one of the weaker months last year. Given
the very strong performance of house prices from
May 2009 onwards, it will take monthly increases in excess of 1% for the annual rate of inflation to be maintained in double digits going forward. The smoother three month on three month rate of
inflation edged down further from 1.5% in March to
1.1% in April, which primarily reflects the impact of February’s 1.0% decline in house prices. April’s figures leave UK house prices exactly 10% below the October 2007 peak.
What role are cash transactions playing?
“The strong rebound in house prices over the last
year has taken place within the context of a subdued
mortgage market, with the number of mortgage
advances across the industry still well down on precrisis
‘norms.’ A natural question which therefore
arises is whether cash buyers have helped to boost
the market and bid up prices?
After all Sterling has depreciated some 28% against most other major curruncies in the same period!!! So in $ or euro terms house prices are down.
For the full report please download the PDF file.
Download PDF |
|
|
|
|
|
