We have had the hottest July on record, yet house price growth shows no sign of dwindling, the Nationwide reports today.
In July average house price went up 0.8% to stand 5.9% higher than 2005 at £167,733, so the building society reports.
This is without doubt the highest annual figure for house price growth since March 2005. This goes to confirm the trend in soaring house prices ever since September 2005.
As annual growth figures double those of July 2005, the Nationwide is warning that there is not likely to be a return to the boom years of 1998 to 2004 when property values doubled.
Between July, August, and September 2005 house prices went up altogether by 0.2%, with annual house price growth dropping to just 1.8%.
Signs are this summer will improve on that.
The property market is in pretty good shape yet the halycon years of boom times are not likely to be repeated.
The Nationwide highlights that affordability has declined for some time, with house prices accelerating at a faster pace than earnings.
Fixed rate mortgages have increased already to take account of the anticipated rise in interest rates, squeezing buyers.
There is also an increase in rental demand as buy to let mortgages are much easier to secure, needing a smaller deposit and less rent compared to the size of the mortgage .
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