Annual house price growth edged up to 5.2% in April from 5.1% in March, with average house price now standing at £193,048.
Robert Gardner, Nationwide's Chief Economist, said:
“The price of a typical UK home increased by 1% in April - the largest monthly increase since June 2014. As a result, the annual pace of house price growth increased for the first time in seven months, edging up to 5.2% from 5.1% in March.
“The pick-up in price growth has occurred even though the pace of activity in the housing market has remained fairly subdued in recent months. Indeed, the number of mortgage approvals is still well below its long run average and 20% below the levels recorded in early 2014.
“The strength of the economy and relatively subdued pace of activity in the housing market remains something of an anomaly. It is possible that heightened uncertainty ahead of the election is weighing on activity, though there is no compelling evidence from previous UK elections to suggest a strong impact.
“Healthy labour market conditions and continued low mortgage rates should help underpin housing demand in the quarters ahead."
Jonathan Samuels, chief executive of Dragonfly Property Finance, added:
"The 1% April price increase, coming a little out of the blue, underlines the inherent volatility of the property market. It truly is a law unto itself.
"Does a strong economy and subdued pace of activity really constitute an anomaly? On paper it might, but in practice the property market is rarely that simple.
"While mortgages are cheap, employment high and the cost of living low, people are far more cautious than they were in the past.
"There is an element of caution, and conservatism, in the market that perhaps wasn't there before 2008.
"The fact that first quarter economic growth wasn’t as strong as expected is certainly consistent with more subdued activity levels.
"People are more aware than ever that the property market is a double-edged sword. And prices overall are high. Buying a property is not a decision that can be taken lightly.
"We would expect activity levels to pick up after the General Election, particularly at the higher end of the market, but 2015 as a whole is shaping up to be a middling year for the market. But is this necessarily a bad thing?"
Jeremy Duncombe, Director, Legal & General Mortgage Club, said:
“Although house price rises in recent months may seem subdued when compared to last year, prices are still rising well above the level of inflation. This is due to a surplus in demand which is outpacing the supply of new houses. This imbalance in the housing market has pushed up the average asking price in April, making homeownership a more distant dream for many potential buyers.
It’s encouraging to see that political parties are talking about building more properties in the run up to the election. However, we need to ensure that house building remains at the top of the agenda throughout the next parliamentary term so a good supply of new properties is built and the issue is not forgotten about after the electioneering is over.”
