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

House price growth continues to slow

0
Written by:
02/03/2015
The latest Nationwide house price index said yearly growth had fallen back from the 6.8 per cent recorded in January to 5.7 per cent last month.

This was the sixth month in a row that year-on-year house price growth had fallen back. This report said prices had fallen 0.1 per cent month-on-month and the average property was now worth £187,964.

Robert Gardner, Nationwide’s chief economist, said the general outlook for the market remained strong. “The broader economic backdrop has remained supportive of housing market activity,” he said. “Mortgage rates remain close to all-time lows and consumer confidence remains buoyant thanks to a further steady improvement in labour market conditions. Indeed, the unemployment rate has continued to decline and earnings growth has picked up, particularly in inflation-adjusted terms, thanks in part to the sharp decline in energy prices.”

Gardner said activity had shown signs of improvement towards the end of 2014, but it would take a few more months before any trend could be established. “Nevertheless, the pace of housing market activity remains fairly subdued. There was a small increase in the number of mortgages approved for house purchase in December, up 2 per cent from 59,000 in November to 60,300 in December, though it remains too early to determine whether this marks a turning point in activity.”

Nationwide said the proportion of people owning their home fell to its lowest level in more than a decade with 63.3% of properties owned in 2013/14. This is down on the 65.2 per cent recorded the previous year and the all-time high of 70.9 per cent in 2003.

“If we look at the shift in tenure patterns by age over the past decade we see a marked decline in home ownership rates amongst the younger age groups,” Gardner added. “In particular, among 25-34 year olds, traditionally the segment containing most first time buyers, the proportion of households owning their own home fell from 59 per cent to 36 per cent between 2004 and 2014.”

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.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

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...

Money Tips of the Week

Read previous post:
BLOG: The dos and don’ts of international money transfers

There’s no denying it: foreign exchange (forex) is big money right now. I’m sure most of you will have seen...

Close