This is the most substantial rate seen since July 2018
The nationwide have reported the Annual house price growth rose from 1.9% in January to 2.3% in February. This is the most substantial rate seen since July 2018, according to the latest Nationwide house price index. However, some landlords are concerned about, how the Coronavirus will impact their portfolio if this virus is not contained quickly. Mr Ben Alderman, a landlord from Hertfordshire, with 186 investment properties, said “Some businesses in China are close to bankruptcy and the USA investment market has seen a downturn. I cannot say I am not worried. I am worried, very worried”.
According to the report, prices rose 0.3% month-on-month, this is after taking account of seasonal factors.
Mr Robert Gardner, who is the Nationwide’s economist, said: “While overall economic growth ground to a halt in the final three months of 2019, labour market conditions remained buoyant and borrowing costs low. The decisive election outcome may have provided a boost to buyer sentiment.
“Recent data releases indicate that the housing market has gathered momentum in recent months, and the latest house price figures are in line with that trend. The number of residential property transactions and mortgages approved for house purchase increased around the turn of the year and surveyors have reported an increase in new buyer enquiries.
“Looking ahead, economic developments will remain the key driver of housing market trends and house prices. Business surveys suggest that activity recovered in the New Year, but there are still significant uncertainties that threaten to exert a drag on the economy in the coming quarters.
“The global economic backdrop remains challenging, with the coronavirus outbreak expected to weigh on global activity in the coming quarters. Investment is likely to remain subdued until the UK’s future global trading relationships become clearer, which is unlikely until early next year.
“Overall, we expect the UK economy to continue to expand at a modest pace in 2020, with house prices remaining broadly flat in 2020 as a whole.”
Mrs Helen Cartwright, the from the British Landlords Association, said: “It’s been a healthy February, and the market continues to stage a recovery. All eyes are currently on the Coronavirus and the impact, if any, this has to the broader UK economy. Some of our members, are concerned, about the Coronavirus its destructive potential to life and assets”.
Author: Marc Attwater
Date: 28th of February 2020
British Landlords Association – Free national landlords association for UK landlords.