You are here: Home - Mortgages - Buy To Let - News -

July house prices fell at fastest rate since 2009 – Nationwide

0
Written by:
01/08/2012
UK house prices declined for the fourth time in five months in July, with prices falling by 0.7%, reported Nationwide.

Its house price index showed that this pushed the annual pace of price growth down to -2.6%, from -1.5% in June – the weakest result since August 2009.

Robert Gardner, Nationwide’s chief economist said the weaker price trend observed in recent quarters is unsurprising, given the disappointing performance of the wider economy.

“Data released last week revealed that the UK recession intensified in the three months to July, with the economy contracting by 0.7% quarter on quarter.

“Indeed, the UK economy has contracted 1.4% over the past nine months, and is now 4.5% smaller than it was in Q1 2008. Against this difficult economic backdrop, it could be argued that UK house prices have shown resilience. While prices are currently 13% below their 2007 peak, this is less than the declines seen in a number of other economies that have experienced similar or more robust economic recoveries.”

Nationwide said the UK economy is likely to see an Olympics-related boost in Q3. In addition, the Bank of England and HM treasury’s introduction of the Funding for Lending scheme, which launches today, should provide much-needed support for the economy and housing market in the months ahead.

Ashley Alexander, managing director of estate agent review website MeetMyAgent.co.uk said the summer of 2012 will be remembered for being a summer of sporting rather than property activity.

“The hope is that the Funding for Lending scheme, and the end of the Olympics, will see a surge in activity in the autumn and inject some much-needed momentum into the market. There are already signs of an improvement in mortgage rates, but we’ll have to wait and see whether this will extend to higher LTVs. Even if there is a greater availability of credit, the question is whether there is the demand for this credit. Consumers remain very cautious.”

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
2196018-estateagents
Home ownership a poor investment, say 14% of youth

One in seven young people feel that property ownership represents a bad investment, according to research by MRM.

Close