30
Apr
House price affordability 'still rising'
The affordability of UK house prices rose this month, new figures
have indicated.
Seasonally-adjusted monthly data from Nationwide showed that prices
dipped 0.4 per cent in April, partially reversing the 0.9 per cent
increase recorded last month.
However, the rate of decline has slowed, with the annual dip down
from 15.7 per cent to 15 per cent, while the three-monthly fall
dropped from 4.1 per cent to 3.1 per cent.
Commenting on the situation, Nationwide chief economist Fionnuala
Earley suggested that "affordability is indeed more favourable and
there does seem to be some cautious optimism from some
quarters".
She said it was premature to say this is the start of a revival,
but commented that this improvement provides "a good grounding for
the market" when the economy picks up.
House prices may start to rise again "sharply" in the future due to
a shortage of new homes being built, Bank of England Monetary
Policy Committee member Kate Barker claimed this week.
