UK house price growth hits double digits in May amid ‘space race’ – Business Live | Business
Hello and welcome to our continued coverage of the global economy, financial markets, euro area and business.
The UK property boom continues to run, with house price inflation picking up again as the pandemic pushes people to move to larger properties in more rural areas.
Figures published by In all the countries this morning show that annual house price growth jumped to 10.9% in May from 7.1% / year in April, pushing the new average price to a new high.
- Annual house price growth stands at 10.9%, highest level in nearly seven years
- Price up 1.8% month over month, after rising 2.3% in April
- New record average price of £ 242,832, up £ 23,930 in the last twelve months
Robert gardnerNationwide Chief Economist says the housing market has seen a “complete turnaround in the last twelve months” since the first foreclosure temporarily froze the market, with deals hitting a record 183,000 in March:
Gardner adds that Nationwide research shows that the push for more space, or a garden, is the main factor driving the market this spring.
“Among homeowners surveyed at the end of April who were moving or were considering moving, more than two-thirds (68%) said this would have been the case even if the stamp duty holiday had not been extended.
It is the shift in housing preferences that continues to drive activity, with people reassessing their needs in the wake of the pandemic.
Nationwide says ‘space race’ continues to drive demand. Of those moving or planning to move, about a third (33%) were looking to move to a different area, while nearly 30% were doing so for easier access to a garden or outdoor space, according to an online survey. with consumers.
“More than a third (36%) of those surveyed said they were more likely to consider upgrading their home with Covid19, with almost half (46%) of them looking to add or maximize space.
Faster broadband was another factor, with the shift to work from home and home schooling during the lockdown showing the value of a good internet connection.
Nationwide’s results will be of interest to the Bank of England, which is closely monitoring Britain’s booming housing market as it assesses the possibility that a rapid resumption of the Covid-19 pandemic could lead to a prolonged period of inflation.
In an interview with the Guardian today, Deputy Governor Sir Dave Ramsden said the Bank expected the price pressures to be temporary, but that he and his colleagues on the Threadneedle Street Monetary Policy Committee were aware of the risks.
Ramsden, the vice governor responsible for markets and banking, said:
“There is a risk that demand will outstrip supply and that this will lead to a more widespread resumption of inflationary pressure. This is something we are absolutely going to guard against. We take a close look at the housing market and a series of indicators in real terms. ”
Also coming today
Surveys of factory purchasing managers in the eurozone, UK and US are expected to show strong growth last month and tight supply chains driving prices up.
The petroleum ministers of the Opec + The group will organize a video call today to assess the latest developments in global markets.
They are expected to stick with the current pace of gradual easing of oil supply, as demand picks up – which has already pushed UK gasoline prices on the rise for six consecutive months. Crude prices rose overnight as Brent rose more than $ 70 a barrel.
- Today: Ministerial Meeting of OPEC and Non-OPEC Ministers
- 9 a.m. BST: Eurozone manufacturing PMI for May
- 9:30 a.m. BST: UK manufacturing PMI for May
- 10 a.m. BST: Flash reading of euro zone inflation in May
- 1:30 p.m. BST: Report on Canada’s GDP in Q1
- 3 p.m. BST: US manufacturing PMI for May