Nationwide Building Society Quarterly Regional House Price Update

[Martin@AS Financial]

Key points:

• Annual house price growth increased to 14.3%, from 12.6% in February
• Wales remained strongest performing region in Q1 2022, while London remained weakest
• Detached properties have increased by nearly £68,000 since onset of pandemic, while average flat prices up £24,00



Some interesting figures from the Nationwide Building Society with Wales leading the charge for performing the most strongly (annual % change this quarter is 15.3%) followed by Scotland (annual % change this quarter is 12%)

Of particular note is the mention that it is becoming more difficult to trade up from a flat to a house. This has always been a fairly big leap in London but as I believe, many have left the cities in search of more space, the price gap has widened (from £12,000 to over £25,000) according to Nationwide.

Full report here:

Download the latest report

[TwoWolves]

These increases are just insane, we can't run our economy like this.

[vetran]

These increases are just insane, we can't run our economy like this.

Don't worry everyone is being moved to Rwanda! Combine that with converting all the offices to des res's and its sorted.

[Protagoras]

These increases are just insane, we can't run our economy like this.

I've been thinking that for over 15 years, but the prices just keep on rising. It's incredibly unproductive in economic terms, but I think it reflects people looking for a store of 'value' buoyed by increased money supply and negative real returns on other 'investments' of similar perceived risk.

It would be much better if this money was invested in the productive economy to provide growth ...

Most people I know think it's an ongoing bubble; but I can see the UK government being being keen not to let it burst, since it creates such an easy wealth affect which presumably helps retain voters' support.

Meanwhile, many people can't get a secure roof over their heads. Yet, almost every day I hear of someone I know who now has a place they've bought as a holiday let. I can't see how this is sustainable, and I see also lenders tightening criteria.

From local observation, houses around here would be marketed for about 2 weeks and then go to 'closing date' for bids. In the last three weeks, I'm not seeing closing dates being defined. It also helps that supply is greater, although still very tight.

Who remembers the house price crash in the mid-nineties? Will we see this again?

Disclosure: I bet against the dot-com boom!

[ladymuck]