Reaction to Nationwide UK house price index

The Vinden Partnership says surge from buy-to-let market in March meant slowdown was inevitable.

The Nationwide Building Society’s house price index for April shows that the average price of a house in the UK increased slightly by 0.2%.

The monthly increase was the lowest since November 2015 and the annual rate of house price growth fell from 5.7% in March to 4.9%.

The buy-to–let market was a key driver in the record number of 165,000 properties sold in March as buyers rushed through their purchases to beat the rise in stamp duty that came into force from 1 April.

It was thought that there might be a sharp drop in demand following this busy period but the figures from Nationwide show continued growth, albeit a slower rate.

The average cost of a UK house in April is now a record £202,436. The figure in March was £200,251.

Martin Bennett, a Regional Director of The Vinden Partnership – a leading multi-disciplinary consultant company to the built environment – said: “The slowdown in house price growth following the new stamp duty levy in April was inevitable.

“The buy-to-let market was responsible for the surge in activity to beat the increase that led to the record numbers the market witnessed in March.

“The continued growth, however, highlights just how strong the demand for housing remains and why we need to see a major increase in the number of homes being built.

“Looking forward, the housing market’s performance may depend on the decision the country makes in June with regards the EU referendum and how the economy reacts to it.”

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