UK house prices 'treading water' in September
Thursday, 29 September 2011 09:53
House prices have continued to 'tread water' in September compared with August, the latest House Price Index report from Nationwide has revealed.
The building society showed the average cost of a property has increased month-on-month by 0.1 per cent in September, while it is now 0.3 per cent lower than a year ago, at £166,256.
According to Nationwide, buyer confidence has been dented by turmoil on international financial markets as a result of the eurozone debt crisis.
Robert Gardner, the building society's chief economist, said property prices have remained static since summer 2010, a trend that is likely to continue for the rest of 2011, "although downside risks have increased as UK and global growth prospects have weakened".
"Sentiment towards major purchases is depressed, as a result of weak labour market conditions and ongoing pressure on household budgets from above-target inflation," he added.
Howard Archer, IHS Global Insight chief UK economist, remarked: "The fact that house prices were essentially only stable in September after dipping in August is consistent with our belief that house prices are likely to trend down gradually over the coming months in the face of persistently weak economic activity, rising unemployment and muted earnings growth."
The figures come a day after the Land Registry released its data for August, which showed prices dropped 2.6 per cent year-on-year to an average of £162,347.
London was the only region to experience an increase in property value over the year at 2.1 per cent, while the biggest drop was in the north-east at 7.8 per cent.
Prices in Wales fell 5.5 per cent and dipped 5.4 per cent in the north-west.
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