UK House Prices Edge Up in June, Nationwide Figures Show

The UK housing market is showing signs of stabilisation, with house prices increasing by 0.2% in June, according to Nationwide’s latest House Price Index. This modest growth has taken the average price of a house in the country to £266,064.

The market is hopeful that mortgage affordability will improve after the Bank of England’s recent decision to hold interest rates. Michelle Stevens, mortgage expert at finder.com, believes that the market is stabilising in anticipation of lower rates on the horizon. However, Maeve Ward, head of intermediary sales at Together, speculates that many first-time buyers, home movers, and investors who have been waiting may delay their plans further.

“However, others may see this as an opportunity; snapping up property deals as some banks cut their rates,” Ward said.

Housing activity has been broadly flat over the last year, with the total number of transactions down by around 15% compared with 2019. By contrast, the volume of cash transactions is around 5% above pre-pandemic levels.

Robert Gardner, Nationwide’s chief economist, explained that while earnings growth has been much stronger than house price growth in recent years, this hasn’t been enough to offset the impact of higher mortgage rates, which are still well above the record lows prevailing in 2021 in the wake of the pandemic.

“For example, the interest rate on a five-year fixed rate mortgage for a borrower with a 25% deposit was 1.3% in late 2021, but in recent months this has been nearer to 4.7%,” Gardner said.

Stevens suggested that the market could yet be boosted by improved mortgage affordability.

“Although prices only edged up very slightly last month, over the last couple of weeks we’ve seen a few of the major banks reduce their mortgage rates, and this will no doubt help provide a much-needed boost to confidence in the housing market,” Stevens said.

UK house prices

A Third of First-Time Buyers Think Labour is Best Placed to Support Them

A recent survey by Moneybox found that a third of first-time buyers think Labour is the party best placed to support them. The survey of 1,000 aspiring homeowners across the UK also found that 28% of respondents admitted they don’t trust any political party to help them purchase a home of their own.

The survey revealed that two-thirds of aspiring first-time buyers have reevaluated their homeownership goals in the past six months, with half planning to buy at a later date. The average first-time buyer has been saving for two years and 10 months and expects to be able to buy their first home in four years and six months, an increase from four years and two months in 2023.

FTB confidence has wavered in the face of persistent cost of living challenges and market volatility, with 41% admitting they are feeling pessimistic about their chances of becoming a homeowner, increasing from 37% a year ago and 21% in 2022.

First-time buyers

Monmouthshire Building Society Partners with ClimatePartner

Monmouthshire Building Society is working with climate action organisation ClimatePartner to improve its carbon footprint and do more for the environment. The society has sought to improve its environmental credentials as part of its Environmental, Social and Governance (ESG) initiative and selected ClimatePartner for its ability to embed sustainable climate action into corporate activity.

The society was recently accredited with the ClimatePartner certification, acknowledging that it provided a transparent disclosure of its entire climate action strategy, including carbon footprints, emissions reduction targets, implemented reductions, and financial contribution towards climate change projects worldwide.

Since 2022, the society has reduced its total emissions by 52% for the period 2022-2023 and around a further 20% in the last year.

Monmouthshire Building Society