Latest data released by UK Nationwide Building Society - 30 September 2020
- Prior +2.0%
- House prices +5.0% vs +4.5% y/y expected
- Prior +3.7%
Slight delay in the release by the source. The annual house price growth jumped to its highest level since September 2016 as it continues to reflect more robust housing market activity in recent months in the UK. Nationwide notes that:
"UK house prices increased by 0.9% month-on-month in September, after taking account of seasonal effects, following a 2.0% rise in August. As a result, there was a further pick up in annual house price growth from 3.7% in August to 5.0% in September - the highest level since September 2016.
"Housing market activity has recovered strongly in recent months. Mortgage approvals for house purchase rose from c66,000 in July to almost 85,000 in August - the highest since 2007, well above the monthly average of 66,000 prevailing in 2019.
"The rebound reflects a number of factors. Pent-up demand is coming through, with decisions taken to move before lockdown now progressing. The stamp duty holiday is adding to momentum by bringing purchases forward. Behavioural shifts may also be boosting activity as people reassess their housing needs and preferences as a result of life in lockdown.
