UK sees unexpected house price rises in April

House for sale in the UK Credit: David Wright/Creative Commons Attribution-Share Alike 2.0

House prices were unexpectedly seen to rise in April after several months of decline said the Nationwide Building Society.

The average house price was seen to increase by 0.5 per cent in the UK in April.  This was reported today, May 2, despite economists’ predictions that prices would continue to fall.

Nationwide is predicting a mini-resurgence in the market as reported by the BBC, as mortgage rates begin to reduce.

Liz Truss‘s August 2022 mini-budget increased borrowing costs but as the Financial Times reported on Twitter: “UK house prices rise unexpectedly in April as borrowing costs ease”.

A month after the mini-budget, then Chancellor of the Exchequer Kwasi Kwarteng promised a series of large tax cuts, without explaining where the money would come from. This affected financial markets and mortgage rates rose to a 14-year high.  

The average cost of a UK home rose to £260,441 in April, with the housing market finally settling down after some reckless economical management by Truss’s short-lived government.

These rises present an obstacle for first-time buyers, but also for your average Brit, whose supermarket and energy bills have soared since the pandemic. At the end of the day, your house is only worth what people are willing to pay for it.

And the forecast is not altogether rosy, as Samuel Mather-Holgate, from Mather and Murray Financial, explained to the BBC:

“The housing market always sees a boost in the spring, but don’t confuse this data with the green shoots of recovery.  The annual figure is still down, and this is expected to get worse over the next few months, especially if the central bank increases rates again this month.”

But other analysts are suggesting that buyers who have been waiting to commit are getting ready to invest in property again, which it is hoped will assist the housing market to regain some overall strength.

Thank you for taking the time to read this article. Do remember to come back and check The Euro Weekly News website for all your up-to-date local and international news stories and remember, you can also follow us on Facebook and Instagram.

Written by

David Laycock

Dave Laycock has always written. Poems, songs, essays, academic papers as well as newspaper articles; the written word has always held a great fascination for him and he is never happier than when being creative. From a musical background, Dave has travelled the world performing and also examining for a British music exam board. He also writes, produces and performs and records music. All this aside, he is currently fully focussed on his journalism and can’t wait to share more stories from around the world and beyond.