UK house prices demonstrated resilience in May, bouncing back with a 0.4% increase after a similar decline in April. The average property price now stands at £264,249, according to Nationwide.
Despite affordability challenges from rising long-term interest rates, the annual growth rate for house prices more than doubled from 0.6% in April to 1.3% in May. This suggests the market's robustness even amid economic pressures.
Earlier in the year, slight increases in mortgage rates had slowed the housing market. By the end of May, the average two-year fixed-rate mortgage rose to 5.92% from 5.56% in January, according to Moneyfacts. Despite these higher rates, the market remained stable with 61,100 new mortgages approved in April, similar to March's figures. However, remortgaging activity decreased, with approvals dropping from 33,500 in March to 29,900 in April.
Consumer confidence is improving due to solid wage growth and lower inflation, contributing to this stability. Zoopla data shows an increased supply of homes for sale, the highest in eight years, which is expected to limit further price rises in 2024.
Bridging finance can provide quick, short-term funding, allowing buyers to act swiftly in a fluctuating market. With traditional mortgage rates high and remortgaging less appealing, it offers an alternative to secure property deals without long-term financial commitments. This flexibility is crucial in maintaining market activity and supporting transactions during periods of economic uncertainty.
Source: The Guardian