Nationwide house price index reveals 0.4% increase in May
The housing market “appears to be showing signs of resilience in the face of ongoing affordability pressures”, according to the latest house price index from Nationwide.
Reporting a 0.4% increase in property values in May, and an annual change of 1.3%, the average home is now valued at £264,249, according to the mortgage lender.
The firm also predicts that the upcoming general election will not affect house prices, based on past experience.
“On the whole, prevailing trends have been maintained just before, during and after UK general elections. Broader economic trends appear to dominate any immediate election-related impacts,” said Robert Gardner, Nationwide’s Chief Economist.
Meanwhile, Zoopla has reported a very slight fall in house prices in April, with values slipping by -0.1% when compared to a year ago.
Valuing the average home at £264,300, the property website reported that improvements in inflation rates have contributed to market stability.
The firm also noted that there are more homes for sale now than at any point in the last eight years, with the average agent having 31 homes for sale.
Two-fifths of these homes have had their asking price reduced by more than 5%, and 31% of homes currently available for sale were also listed in 2023 but failed to find a buyer.
Persimmon preparing £1bn bid for Cala
Volume developer Persimmon is set to bid for Cala Homes, after Legal & General put the housebuilding firm up for sale after pulling out of the modular housing business last year.
Cala, which has a £1bn price tag, could also attract bids from Taylor Wimpey and Avant Homes, according to reports from Sky News.
Legal & General has owned Cala since 2018, when it was valued at £600m; in 2023 Cala Group had a turnover of £1.25bn and made a pre-tax profit of £104m from the sale of 2,917 homes.
NFB calls for Ofsted-style planning system
The National Federation of Builders (NFB) has published a manifesto of recommended policies this week, including an Ofsted-style planning system.
Under the proposals, any planning departments assessed to be failing would receive support from private firms.
The recommendation comes in the wake of a RIBA Future Trends survey in 2021, in which nearly 80% of architectural practices have said that projects have been delayed in the planning system.
Planning reforms have regularly hit headlines recently, with Labour leader Kier Starmer recently stating that he would “bulldoze” through the struggling system if his party wins power.
Other NFB proposals include an exemption from stamp duty land tax for new homes with an EPC rating of A, and the launch of a social housing unit within government which supports councils and investigates how other countries provide social housing.
The reality is obvious; the construction industry is a key component for the UK to meeting its numerous challenges and therefore the incoming government must not only understand where the barriers to our industries’ growth exist, but what that means for the UK’s ambition.
Richard Beresford, Chief Executive, NFB
HBF survey open for responses
The Home Builders Federation has launched its 2024 State of Play survey, which will create a comprehensive study of SME housebuilders and review the challenges and opportunities faced by small to medium-sized businesses.
The 2023/24 State of Play report revealed that 93% of SMEs felt that securing planning permission was a key blocker to growth. In addition, 91% said that under-resourced planning departments was a key hindrance.
The survey is open until close of business on 17 June, and can be completed here.
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