The End of House Price Rises? – Nationwide Report
Nationwide building society have released their latest property market report which shows that prices rose again in June but only struggled to find a 0.1% increase.
The small rise comes after a 0.5% increase in May, when the average property price was calculated at £170,000 accross the UK. The Nationwide’s house price index details house price rises of 3% during 2010 to date.
Nationwide’s chief economist Martin Gahbauer commented on the figures, explaining the slowdown on price rises may be due to an increase in the number of properties being made available for sale.
“Recent indicators point to an increase in the supply of property coming to the market for sale, perhaps in response to the abolition of Hips (Home Information Packs) in the opening days of the new coalition government,” he said.
“With the level of demand remaining broadly stable, this would in part help to explain the recent slowdown observed in the rate of house price inflation.”
House price growth seems unlikely to repeat the figures we experienced last summers , with some commentators such as members at House Price Crash predicting much worse to come.
One can only wonder whether this is the start of a downward trend as more speculators bring their properties to market and is also considered a possibility by the Rat and Mouse.
Could this lead us into to a period of price consolidation and the return of realistic and achievable opportunities for first time buyers (FTB) to enter the market?
Related posts:
- Nationwide – 2010 The End of House Price Rises?
- Annual House Price Rise Breaks 10%
- Has the Property Market learnt from the House Price Crash?
- Nationwide – house prices rise again
- House price forecasts for 2009 – how far can they fall?
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June 30th, 2010 at 10:58 am
Be careful listenting to the guys at HCP, they are extremeist and inistent on the market crashing. Its not going to happen and whilst it will go up and down it will never be allowed to crash.
June 30th, 2010 at 11:41 am
If this market is not allowed to crash then heaven help anyone under 30 – the relationship between house prices and wages is currently both ridiculous and unsustainable.
June 30th, 2010 at 12:53 pm
Sory, too bee perdantik, butt if your gowing too spel ‘there’ in the ferst sentense wen yew reely meen ‘their’, I’me knot gowing too reed you’re artikal!
June 30th, 2010 at 1:30 pm
Thanks for pointing that out David, consider it amended.
July 16th, 2010 at 12:55 am
Hi
This obsession with house prices only ever going up is one of the biggest cons in history. It benifits no one but those that seem to control the media and these people are in debt to property. What other reason would someone say that it will never be allowed to crash, why not? Housing in my area has crashed and there is not riots in the streets, most flats or apartments as the investers would say are more than halve the cost post 2007. This is good, most of these flats were bought by speculaters and the investment (gamble) has lost them money
July 20th, 2010 at 9:52 pm
Increases in supply but tighter lending criteria will lead to a price fall.
August 5th, 2010 at 2:15 pm
The Halifax is saying that house prices rose by 0.6% in July so who do you believe? I think there will be a cooling off period and then prices will start to rise again due to the fundamental shortage of housing stock available.