House prices in the UK rose at their fastest pace in close to three years this June, according to statistics from the Nationwide House Price Index.
The mutual’s figures revealed that prices rose by 0.3 per cent on the month to give a 1.9 per cent annual rise, following a 0.4 per cent rise in May.
Brian Murphy, head of lending at Mortgage Advice Bureau (MAB), commented on the figure: “Homeowners will be delighted to see a third month of house price increases in Nationwide’s figures. Potential buyers will be comforted by the fact that mortgage rates are still heading in the opposite direction. As property becomes more desirable by the week, falling fixed rates mean they can still enjoy exceptionally low interest on their loans for increasingly long periods of time.
“This golden age of rate reductions is coaxing more borrowers through the door, and with the guidance of specialist brokers there are plenty of favourable deals to help them contend with rising prices – especially as lenders are playing their part, with some offering low product fees.
The onus is now on the government to agree the finer details of its mortgage guarantee scheme – and soon. Its £3.3bn commitment to social housing was a small victory in this week’s Spending Review, but a meagre share of the total £100bn investment. We must hope it encourages the private sector to put more faith in property and act now to increase housing supply.”
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