Nationwide delivers good news from UK’s housing sector

A fresh batch of good news got delivered by Nationwide, a 160-year-old organization that is widely considered as the world’s largest building society. According to the report from Nationwide, the UK economy, its housing sector is doing pretty well despite the referendum that went unexpected and could finally lead to a UK divorce from the European Union.

A House price grew by 0.6 percent in August and is higher than 0.5 percent growth seen in July. Annual price growth reached 5.6 percent. Average price recorded was £206,145. However, Nationwide’s chief economist, Robert Gardner pointed to this odd price by saying, “The pick up in price growth is somewhat at odds with signs that housing market activity has slowed in recent months. New buyer enquiries have softened as a result of the introduction of additional stamp duty on second homes in April and the uncertainty surrounding the EU referendum. The number of mortgages approved for house purchase fell to an eighteen-month low in July.”

According to him, the price growth can be explained by weak supply in the market and Mr. Gardner believes that the outlook is still clouded by uncertainties and for that to improve; conditions in the labor market, as well as, confidence would play key roles.

The measures taken up by the Bank of England (BoE) are likely to provide support too, along with the pound, which could pop up foreign demand forUK housing due to its devaluations.