Surprise Recovery for House Prices in the UK

House prices have made a surprise bounce this month, according to figures released today by the Nationwide Building Society. Prices of homes in the UK have increased on average by 0.9% month on month since February. Although this is only a slight increase, it takes the average home up to a value of £150,956. The increase follows sixteen months of consecutive falls in house prices since October 2007; experiencing their last fall of 1.9% in February before this slight upturn.

The continual decline in house prices over sixteen months has seen the average house price in the UK fall from a peak of £186,044 down to £147,746 in February 2009. Up until February, the total annual fall of house prices stood at 17.6%, however, the slight bounce back recognised by the Nationwide during March has reduced this average down to 15.7%

Despite this positive movement in the property market, industry experts have warned against seeing this as a signal of recovery. Fionnuala Earley, the chief economist at the Nationwide said that the increase is not necessarily indicative of an improvement in the market in general and that it is “too soon to say” whether the downward trend of the property market is beginning to take an upward turn.

The statistics from the Nationwide come alongside news that the Bank of England has seen mortgage approvals increase over the last month, implying that the market is beginning to recover. However, approvals rose from a low base, increasing from 32,000 in a month to 38,000 between February and March, which is an increase of 19%; the highest level in 9 months. Cumulatively, the slight increase in house prices and an increase in mortgage approvals demonstrates a positive outlook for the property market, however it is not necessarily indicative of the slump bottoming out.

With house prices still unstable and house sales continuing to be low, many people are concerned about the prospect of selling a home, particularly those who may be facing property repossession. For those people, Swift Capital can offer a solution. We make it possible for you to sell your home through an equity release agreement so that you are free to use the capital in your home however you wish. Contact Swift Capital today and see if we can help you.