Housing Market Update
House prices rose 2.1% in August according to Nationwide, more than offsetting last month’s September fall of -0.6%. This brings annual house price growth to 11.0%, supporting the view that price growth will remain strong this year.
Demand has started to soften, but remains above supply. The gap between supply and demand will continue to be a key driver of price growth.
Mortgage data suggest activity will remain strong, with 2021 seeing 28% more mortgages approvals so far compared to this time in 2019.
First Time Buyer numbers were up 63% in June compared to June 2019. Their share of the market has fallen however, down to 25% of all mortgages from 30% in 2019.
There were higher numbers of more affluent buyers during the pandemic. Across both buyer types we’ve seen a greater use of equity. The average income of both first time buyers and home movers has also increased.