House prices continue to ease in July, say Nationwide

Permalink: House prices continue to ease in July, say Nationwide
by Kay Murchie

The latest house price index from the Nationwide Building Society has revealed a 0.5% fall for the month of July compared with June.

The latest house price gain means the annual rate of house price inflation fell to 6.6%, down from 8.7% in June, with the average UK home costing £169,347.

The annual rate of house price inflation is now at its lowest since December.

Commenting on the figures, Nationwide’s chief economist Martin Gahbauer, said: “At the moment, the market is clearly easing relative to the very tight supply conditions that characterised it since early 2009.

“A combination of restrictive credit conditions and uncertainty about the future economic outlook continues to limit the pool of buyers to those with relatively large financial resources,” he said.

The housing market continues to suffer as first-time buyers still need a hefty deposit of at least 25% to secure a mortgage.

Meanwhile, the Nationwide joins many other commentators by suggesting the housing market will remain subdued this year due to economic uncertainty.

Furthermore, the decision by the coalition Government to scrap Home Information Packs (Hips) has resulted in a surge of properties being put up for sale but the lack of buyers will ultimately drive down house prices.