The report showed house price expectations reached a new high in July as consumer confidence showed signs of stabilising.
House price expectations raised significantly in July, with consumers expecting house prices to rise 4.2 per cent over the next six months, the highest increase the Index has ever predicted and significantly up from the 2.7 per cent recorded in June.
Nationwide’s executive director, Stuart Bernau, said: “It is almost 12 months since the Bank of England last changed Base Rate and over that period consumer confidence has stabilised. However, this more settled environment may not last as people are increasingly concerned about the current economic situation and the number of jobs available both now and over the coming months.”
In addition to the main Nationwide Consumer Confidence Index, the Society tracks three other indices; the Present Situation Index, Expectations Index and Spending Index. The Expectations Index showed the number of people who think now is a ‘good’ time to make a major purchase (e.g. a house or a car) increased slightly in July, from 23 per cent to 25 per cent, to the same level seen 12 months ago.
Thomas Reeh, blackandwhite
.co.uk’s chief executive, said the mortgage market was experiencing a healthy rate of growth. “The results from the Nationwide Index are intrinsically liked to mortgages. Consumer confidence is driven by how people feel, and in the UK house prices have seen a 0.8 per cent growth in the last month, which annualises at 7.2 per cent. This is a very healthy rate of growth and while the economy continues to plod along, we’ve seen a great increase in business with the buy-to-let market becoming increasingly strong.”
