House price growth reaches highest level since 2004, says Nationwide
This week saw the release of Nationwide’s latest house price index, which revealed that the average property value has risen by 14.3% over the past twelve months – the strongest pace of increase since November 2004.
Rising 1.1% in the month, the average house price is now £265,312; an increase of over £33,000 in the past year.
The housing market has retained a surprising amount of momentum given the mounting pressure on household budgets and the steady rise in borrowing costs.ROBERT GARDNER, CHIEF ECONOMIST, NATIONWIDE
Meanwhile, Zoopla published their house price index for March 2022, reporting that the number of homes for sale increased in the month, but buyer demand remained strong.
Declaring a 8.1% annual increase to the end of February, with an average property price of £245,200, the property website warned that higher mortgage rates and the rising cost of living are expected to slow the housing market in the coming months.
Some suppliers fixing prices for 24 hours, warn CLC
The Construction Leadership Council has warned that severe price inflation has resulted in some suppliers holding prices for only 24 hours.
In its latest Construction Product Availability Statement, the CLC reported a “slight softening and shift in the balance of demand”, but highlighted supply challenges across several materials, such as bricks, blocks and roof tiles.
The volatility of energy prices has also now begun to affect the market, with the CLC warning that plastic products could also experience rising costs due to ongoing raw material shortages.
The ongoing conflict in Ukraine could also affect material supply and prices, with birch plywood, ceramic tiling and sanitaryware at risk as a result of sanctions on Russia and Belarus.
Reacting to the ongoing Ukraine crisis, the CLC also published a 10-page report this week, stating that “a collaborative response to these challenges is needed to avoid the risk of damage to industry capacity and capability”.
Bellway sets aside £187m for cladding improvements, as Gove agreement grows closer
Housebuilder Bellway have made a provision of £187m for cladding and fire safety improvements to their buildings, following the Grenfell Tower fire five years ago.
Posting £1.78bn of revenue in their first-half results for 2022, the volume developer also revealed that they have been able to claw back around £30m from suppliers.
Meanwhile, housebuilders look set to agree a deal with the Government to repair housing blocks affected by the ongoing cladding crisis, going back 30 years.
The pledge would commit builders to remediate all buildings over 11 metres. However, there is no sign of an agreement for ‘orphan’ buildings; properties where owners cannot be traced and for which Gove has demanded a £4bn contribution from the sector.