Cost of housing is set to slow

Forecast: Annual house price growth slowed modestly to 12.1 per cent in April, down from 14.3 per cent in March, according to Nationwide.

Robert Gardner, its chief economist, said: “Housing market activity has remained solid, with mortgage approvals continuing to run above pre-Covid levels. Demand is being supported by robust labour market conditions, where employment growth has remained strong and the unemployment rate has fallen back to pre-pandemic lows.”

He expects the housing market to slow in the quarters ahead as the squeeze on household incomes intensifies and interest rates rise.