Lender reports fall in house prices
House price inflation is easing with prices slipping 0.5 per cent in July, according to Nationwide.
The lender has reported its first fall in UK prices since February, after recording that prices were stable last month.
Its three month on three month rate of change, which it says is a smoother indicator of price trends, has fallen from 1.7 per cent to 1.3 per cent.
The annual change in house prices has also fallen, from 8.7 per cent last month to 6.6 per cent.
Other recent figures published by the Land Registry and Hometrack have also suggested prices are falling.
Martin Gahbauer, chief economist at Nationwide, said: ‘Up until recently, the shortage of buyers in the market was more than offset by an even more severe shortage of properties for sale, with the result that prices rose. Evidence continues to build that this imbalance between supply and demand is easing.
‘It will take several more months to establish whether house prices are now simply oscillating around a flat price trend or whether a period of downward trending prices may be in store.’
Have your say
You must sign in to make a comment