UK house prices have risen by 12.1% in the past year according to the Nationwide Building Society, but the rate of increase is set to slow.
The mortgage lender said that the monthly increase in April 2022 was lower than in March, and the downward trend was expected to continue as budgets were squeezed.
Annual house price rises have been higher than 10% in all but one month of the year to April 2022, with the average UK house price now £267,620. This news is particularly tough for those trying to get onto the market.
Despite the slowing in the growth rate, demand for properties is still outstripping the number of homes on the market. Steady employment levels have also kept demand high, with the survey by Nationwide suggesting that 38% of those asked said they were either in the process of moving or considering a move.
Andy from Arcus said; “The continued boom in property prices won’t be sustainable if the Bank of England raises interest rates further. As the cost of living squeeze continues, it makes sense for consumers to carefully consider the affordability of their borrowing, which could lead to a welcome slowing down of the market and help those at the bottom of the ladder.”