–Nationwide: UK July House Prices -0.5% m/m; +6.6% y/y
–Nationwide: UK July y/y House Price Rise Lowest Since Dec09
LONDON (MNI) – UK house prices fell in July, dropping 0.5% on the
month, their first monthly fall since February.
The Nationwide house price survey follows the July surveys from
Hometrack and Rightmove, both surveys of house asking prices, and all of
them are reporting price falls.
The Nationwide survey showed July house prices up 6.6% on the year,
compared to up 8.7% on the year in June, the lowest outturn since
December 2009 when prices rose 5.9%. Nationwide’s chief economist said
it was difficult to tell whether the trend in house prices was flat or
downward.
UK house prices in the Nationwide series fell just over 19% from
peak to trough. They then saw their first monthly rise in March 2009,
and have risen in 13 of the 15 months since then.
But there is growing evidence that fears over the impact of fiscal
austerity measures on personal finances are preventing potential home
buyers from entering the market.
“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,” Martin Gahbauer,
Nationwide’s chief economist, said.
On a three monthly basis house prices through July fell to 1.3%
from 1.7% on the same basis in June, with rises in the yearly rates
again being hamstrung by relatively large increases a year ago.
–London newsroom: 4420 7862 7491; email: wwilkes@marketnews.com
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