House prices bounced back in July, says Nationwide
Thanks BBC News for sharing my thoughts on the latest Nationwide house price data released today. For the full article click here.
Recent and proposed policy changes combined with a release of pent up demand (and supply) show up in this month’s house price data.
The Stamp Duty Land Tax change and pent up housing demand have unsurprisingly encouraged an increase in buyers. On the supply side, proposed changes to Capital Gains Tax are encouraging those who had considered selling and were waiting for ‘the right time’.
This combined force is increasing the rate of transactions amongst ordinary property owners and potential owners. It shows up in the data: annual house price growth recovered to 1.5% in July, with house prices up 1.7% month-on-month. What no one can forecast is what happens next. There are some nerves amongst homeowners, investors and economists.