A new report from Nationwide has shown that in April, UK house price growth reached double digits for the first time since 2010.
In the year to April, property prices increased by 10.9%, marking the first double-digit growth since April 2010 and the fastest rate of increase since 2007.
The leading building society stated that house prices increased by 1.2% in April, up from the 0.5% growth recorded in March, which highlights that the UK’s property market still continued to grow from strength to strength.
“After several months of moderation, the pace of house price growth picked up in April, with prices rising by 1.2% during the month. As a result, annual house price growth has reached double digits for the first time in four years, with the price of a typical home 10.9% higher than April 2013,” Robert Gardner, Nationwide’s Chief Economist, commented.
“The introduction of Mortgage Market Review (MMR) measures could have an impact on activity levels in the months ahead as the new measures bed down. However, underlying demand is likely to remain robust, as mortgage rates remain close to all-time lows and as consumer confidence improves further on the back of stronger labour market conditions and the brighter economic outlook,” Gardner continued.
London and the South East
It’s no surprise that London and the South East saw the largest property price increases. Property prices in London were 20% higher in Q1 2014 than their pre-crisis levels, whereas across the rest of the UK as a whole, prices were around 2% lower.
“Interestingly, price growth in London and the South East appears to be being driven by the top end of the market, with higher priced locations recording stronger price growth,” Gardner added.
It seems that the UK’s property market continues to grow, with London still widely considered as a ‘safe haven’ for property investors.