Can building activity keep up with increasing demand?

Employment continues to rise at a robust pace and, in inflation-adjusted terms, regular wages also continue to rise at a healthy rate.

With this trend expected to continue and with interest rates likely to stay on hold for longer than previously anticipated, the demand for homes is likely to strengthen in the months ahead.

House Price Index Headlines Jan 2016 Dec 2015
Monthly Index* 396.9 395.6
Monthly Change* 0.3% 0.8%
Annual Change 4.4% 4.5%
Average Price (not seasonally adjusted) £196,829 £196,999

*Seasonally adjusted figure (note that monthly % changes are revised when seasonal adjustment factors are re-estimated)

Click here for Nationwide's House Price Index report