Nationwide Latest for August 2014

Nationwide have announced house prices are on the up. House prices increased by 0.8% in the month of August, compared to 0.2% in July. The average house price in the UK now stands at £189,306, according to Nationwide. June recorded the highest house price growth of 11.8%. These increases continue to outstrip earnings significantly, where average wage growth has been less than 1% in recent months.

However, low mortgage rates have helped houses to remain affordable for some. Mortgage approvals decreased between January and May 2014, and have rallied since, which has also been confirmed by Mr Gardner of the Bank of England. Mr Gardner added he anticipates interest rates will rise in the first quarter of 2015, though the rise will be gradual.