MNI: UK Nationwide House Prices Pick Up In April

--UK Nationwide April house price index +0.2% m/m, 2.6% y/y

     LONDON (MNI) - UK house prices picked up in April, rising 0.2% on the

month, with annual gains accelerating to 2.6%, up from 2.1% in April, the

Nationwide House Price Index showed.

     Annual house price growth in the Nationwide series has held in a 2 to 4%

range since March 2017, but is now bumping along at the lower ends of the range.

     Nationwide's Chief Economist Robert Gardiner said the modest pick-up prices

came against the backdrop of lower mortgage approvals in February.

     "February saw a softening in house purchase approvals to 64,000 cases,

following a surprise rise in January. These figures are broadly in line with our

expectations and close to the average for the last three months of 2017.

Surveyors continue to report subdued levels of new buyer enquiries and recent

months have also seen a softening in new instructions," he said.

     "Looking ahead, much will depend on how broader economic conditions evolve,

especially in the labour market, but also with respect to interest rates.

Subdued economic activity and the ongoing squeeze on household budgets is likely

to continue to exert a modest drag on housing market activity and house price

growth this year. We continue to expect house prices to rise by around 1% over

the course of 2018," he added.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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