UK house price index rose sharply in April

According to the report from Nationwide Building Society, annual house price growth rebounded to 7.1% in April, from 5.7% in March. Economists had expected a 5.0% increase. Prices up 2.1% month-on-month, the biggest monthly rise since February 2004. Economists had expected a 0.5% increase. Annual growth will reach double digits in June if prices are flat over next two months. New record high average price of £238,831, up £15,916 over the past 12 months.

Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, said: “Annual house price growth accelerated to 7.1% in April, only slightly below the peak of 7.3% recorded in December and up from 5.7% in March. In month-on-month terms, house prices rose by 2.1% in April, after taking account of seasonal effects, the biggest month rise since February 2004. Just as expectations of the end of the stamp duty holiday led to a slowdown in house price growth in March, so the extension of the stamp duty holiday in the Budget prompted a reacceleration in April. However, our research suggests that while the stamp duty holiday is impacting the timing of housing transactions, for most people it is not the key motivating factor prompting them to move in the first place".