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House prices rising in May points towards market recovery

The Nationwide Building Society have released May’s figures for the UK housing market; raising the hopes of homeowners all over the country that finally the market is on the up. According to Nationwide we have seen rises of 0.4 per cent taking our average homes prices up to £167.912. Although in the pricing index for this year to May shows an increase of as much as 1.1 per cent housing experts are still far from convinced that the worry in the housing market is gone, in fact it is still be taken with great caution.

I would say the improvement in the housing market definitely has something to do with the availability of first time mortgages which have been helped somewhat so by the governments ‘funding for lending’ scheme.

There is still reason for caution; BBC’s housing expert Henry Pryor had this to say: ‘Prices may be creeping higher in parts of the country as Funding for Lending and the governments Help to Buy initiative inflate what many fear is the next bubble. But in other parts of the country ‘deal prices’ (the price that people are actually trading at) are static at best.

I think it is vital that we are not fooled by these statistics and remember that until the end of the summer months we will not truly understand whether or not the buying and selling market is on the up. We should also remember that even now transactions are still at an all-time low in the United Kingdom.

However we should be feeling positive as a country with this being the highest annual inflation figures that has been recorded since November 2011; also lets remember that compared to the year-on-year fall of 0.7% from last year, this is still positive.

The chief economist at IHS Global Insight, Howard Archer also stated that May’s figures ‘are fully consistent with our view that house prices are likely to achieve a moderate gain of a few per cent or so over 2013, as activity gradually picks up’. He did also state that he doesn’t feel that the housing market will really make a ‘firmer recovery’ until well into 2014, stating that this is when the ‘Help to Buy’ scheme properly filters through.

Making home improvements seems to be something else that homeowners in the UK are doing more of again now; simple improvements to the kitchen or ‘the heart of the home’ are easy enough to make. Changing kitchen cupboard handles, editing worktops and adding a lick of paint are all easy enough to make home improvements that can improve your homes appeal to potential buyers. In a still very difficult market we need to do all we can to sell our home.

Buying Houses since 1972