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CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Wednesday, 31 August 2016

UK house prices accelerate

Record high

Pretty interesting looking at the UK property market headlines today, which include "caution", "worse on the way", "Brexit house price hit", "house prices defy uncertainty only because there are too few homes for sale", "cloudy outlook", and so on.

But then there was also "Another blow to Project FEAR as house prices rise again".

And indeed, so they did.

Nationwide reported that the average UK house price rose by +5.6 per cent year-on-year in August from a year earlier (increasing from +5.2 per cent in July).

The average price hit an all-time high of £206,145.

With the MPC cutting interest rates to 0.25 per cent after years of inaction, and the Bank of England electing to purchase another £60 billion of UK government bonds - applying further downward pressure to interest rates - the cost of fixed rate mortgages keeps on getting cheaper. 

Source: Nationwide

That said, the outlook for the UK economy is uncertain after Brexit, with several indicators suggesting a slowdown.