30 Apr

House price affordability 'still rising'

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.

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