The strength of the economy and relatively subdued pace of activity in the housing market remains something of an anomaly. It is possible that heightened uncertainty ahead of the election is weighing on activity, though there is no compelling evidence from previous UK elections to suggest a strong impact.

Nationwide

  • Annual house price growth edged up to 5.2% in April from 5.1% in March
  • UK house prices rose by 1% in AprilNationwide

Commenting on the figures, Robert Gardner, Nationwides Chief Economist, said:

“The price of a typical UK home increased by 1% in April – the largest monthly increase since June 2014. As a result, the annual pace of house price growthincreased for the first time in seven months, edging up to 5.2% from 5.1% in March.

“The pick-up in price growth has occurred even though the pace of activity in the housing market has remained fairly subdued in recent months. Indeed, the number of mortgage approvals is still well below its long run average and 20% below the levels recorded in early 2014.

“The strength of the economy and relatively subdued pace of activity in the housing market remains something of an anomaly. It is possible that heightened uncertainty ahead of the election is weighing on activity, though there is no compelling evidence from previous UK elections to suggest a strong impact.

“Healthy labour market conditions and continued low mortgage rates should help underpin housing demand in the quarters ahead.”