House prices edge forward in April
House prices edged further ahead by 0.2% last month.
The increase came as there was a jump in the number of properties being sold for below their asking price – 86% in fact according to data from NAEA Propertymark.
However, data from Nationwide Building Society shows that the average UK home is still valued at 2.6% more than the same time 12 months ago, £213,000 on average, following April’s increase.
The chief economist at Nationwide, Robert Gardner, said he expects to see house prices rise by around 1% over the course of the year.
Why are house prices still on the up?
Despite concern over household budgets and Brexit looming on the horizon, house sales are still strong, the number of houses being built increasing and property prices continue to rise, albeit slower than last year.
CEO of Propertymark, Mark Hayward, noted that demand will likely increase too.
“Although demand has cooled off over the last few months and created these market conditions, it’s likely to increase again as those holding off on making purchases move to take advantage of these lower prices.”
“Ultimately, this means the number of offers accepted below asking price will fall again and the market will swing back in the favour of homeowners.”
This latest round of property market results coincides with data released by Hometrack last month which indicated that Edinburgh, Nottingham and Manchester topped the house price growth list for UK cities as inner-city demand continues to increase.