House prices in the UK have defied economic forecasts by rising 0.5% in April, making the average price of a house between March and April £260,441.
The unexpected increase reported by the Nationwide Building Society comes after seven consecutive months where prices have fallen on the back of Liz Truss’s infamous mini-budget.
This included £45bn of unfunded tax cuts which resulted in days of turmoil on the markets, a fall in the value of the pound, an increase in the cost of UK government borrowing and pushed mortgage rates to a 14-year high.
The lender said that conditions in the housing market have “taken a while to settle down” since the mini-budget and whilst mortgage rates are “well below” the September figure they are at twice the level they were 12 months ago. However they are predicting a “modest recovery” in the housing market as rates start to come down.
Ben Furnell of Furnell Residential said: “Our own forecasts indicate only a slight up- tick over the coming months as household’s battle with the increasing cost of living and the continuing economic uncertainty.
“That said, there is definitely activity in the market from home owners wanting valuations and potential buyers requesting viewings. We are also achieving plenty of sales, but it is important that we continue to manage vendor expectations.”
Furnell Residential is a family owned estate agency covering North Leeds, Wetherby, York, Harrogate and surrounding areas.