House Prices Up 12% But Rises Expected To Slow, Says Nationwide

• Annual UK house price growth slowed modestly to 12.1% in April, down from 14.3% in March

• Prices up 0.3% month-on-month after taking into account seasonal effects

• Poll reveals 38% actively moving or considering move

UK house prices have risen by 12.1% in the past year but the rate of increase is set to slow, according to the Nationwide Building Society.

The mortgage lender said that the increase in April was lower than in March, and the trend was likely to continue as budgets were squeezed.

The likelihood of further interest rate rises could also affect the market.

First-time buyers will still be concerned that annual price rises have been in double digits for months.

In all but one month in the past year, annual house price rises have been higher than 10%, Nationwide said.

Across the UK, it said the average house price in April was £267,620.

The UK housing market is continuing to see demand for properties outstripping the number of homes on the market.

Employment levels have also been relatively steady, despite the pandemic, which has helped to keep demand high, said Robert Gardner, Nationwide's chief economist. A survey for the building society suggested that 38% of those asked said they were either in the process of moving or considering a move.

This demand has pushed up house prices, despite householders also facing higher food and fuel bills.

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