The latest figures from Nationwide Building Society reveal that average prices rose by 1.0% in April, bringing the annual rate of increase to 10.5%, the highest level recorded since June 2007.  

This means the rate of UK house price inflation has entered double figures for the first time since the global credit crisis began with the average UK property now being worth just under £168,000.

Nationwide warned however, that these healthy gains are likely to lose ground later this year, as the number of sellers coming to the market starts to outstrip the number of buyers.

Martin Gahbauer, Chief Economist said, "There has recently been evidence of a slight shift in the supply-demand balance. While the recovery in new buyer enquiries at estate agent offices appears to have petered out, the last few months have seen an increase in the level of new instructions from sellers. All else equal, this should lead to a gradual flattening out of the recent upward price momentum".

Nationwide' three-month over three-month figures, report that average property prices increased by just 1.1% between the end of January and the end of April. And, much of the annual increase was down to gains made when the property market rebounded in 2009. 

The subdued growth in property prices so far this year is attributed to a number of factors including: the increase in supply of available properties; and, uncertainty regarding the imminent General Election.

Source: Media4Property

What We Say ~ Whatever the state of property prices on a given day, Below Market Value purchase is by far the least expensive way of acquiring additions to your portfilio. Estate Agents only market at or very near open market value.  Auction Houses require full cash purchase on the day with any lender securing your purchase funds against an existing asset.  Only BMV will accomodate maximum BTL loan-to-values against the asset being purchased. Where else can you purchase property for under £10,000 all in?  

Leave a Comment