With Spring comes the sunshine and a brighter outlook in the property market, as house price growth picked up in April, according to figures from building society Nationwide.
Average house prices rose by 0.5% last month, data from the lender showed, coming after seven consecutive drops going back to last September. The average price increased to £260,441, up from £257,122 in March. This has lifted the annual rate of house price growth to -2.7%, from -3.1% in March, as things begin to settle in the markets after the fallout of last autumn’s disruptive mini budget.
Nicky Stevenson, managing director at national estate agent group Fine & Country said: “April’s small rise in house prices is a hugely positive sign, coming after Nationwide reported several months of falling prices even as other indices suggested the opposite was happening.
“The property market is proving much more resilient than people anticipated, even though household finances remain tight, and inflation is still stubbornly high.”
However, April had a less optimistic outlook for first-time buyers, as they face record prices “despite economic headwinds”, data from Rightmove shows. Prices for FTB’s rose 2% over the year to £224,963, or 0.2% in April, even with inflation and the base rate near 40-year highs at 10.1% and 4.25%, respectively.
First time buyers needn’t despair, however, as for the first time since the 2008 crisis, Skipton building society have launched a 100% mortgage, a no-deposit deal aimed exclusively at renters aspiring to buy their first home. This will allow renters to get their foot on the property ladder, while ensuring their mortgage payments do not exceed their rent for the first five years of the loan.
The new product is available up to 100%, and borrowers will need to demonstrate a history of paying rent comparable to mortgage repayments for up to two years, with the deal fixed for more than two years to guard against the risk of falling into negative equity.
The market is looking up for the first time in over half a year, with first time buyers now having more options! If you have any questions or concerns, don’t hesitate to get in touch.
Sources:
UK house prices rise for first time in seven months – Nationwide (proactiveinvestors.co.uk)
Mortgage lenders offer 100% loans for first time since 2008 (thetimes.co.uk)