House prices up in April, Nationwide reveals

29 April 2005
The April house price index from Nationwide reveals that house prices increased in April, reversing March's fall.

The index increased by a seasonally adjusted 0.9 per cent this month, cancelling out the fall of 0.6 per cent in March.

April saw an increase in the price of the average property of £2,252, bringing the level to £156,128.

"Volatility in monthly house price changes is not unusual in the spring. Given the early Easter we believe that the traditional house hunting season may have moved forward slightly this year," said Fionnuala Earley, group economist with Nationwide.

Ms Earley interprets the figures as indicative as a broad flattening-out of house prices this spring: when looking at the last three months as a whole, prices increased by just 0.2 per cent compared with two per cent per month over the same period last year.

"The latest figures seem to confirm our view that housing market activity, which slowed throughout the second half of last year, has now bottomed out," Ms Earley added.

The implications for interest rates are uncertain: economist Andrij Halushka of Cebr stated: "It may be that homebuyers are discounting the possibility of the Bank of England raising interest rates again, but today's data makes another quarter per cent rise more likely."

Click here to find out more about property.

track© DeHavilland Information Services plc