House Price Index: The latest Nationwide Building Society Index, as reported another fall in average UK house prices during June 2008, but in some areas prices are still showing rises.
House Price Index: The average cost of a property fell 0.9 per cent, less than half the rate of the previous month and is the eighth consecutive monthly fall.
The new data shows, the average property in the UK now costs £172,415 a decline of £1,168 when compared with May 2008. The year-on-year change across the UK was down 6.3 per cent in June, compared with 4.4 per cent in May. However it is not all doom and gloom. The Nationwide survey revealed some towns are bucking the trend, with annual price rises in Cambridge, Canterbury, Oxford, Carlisle and Aberdeen of 3 per cent or more. Fionnuala Earley, chief economist, at Nationwide, said, “The pace of house price falls slowed significant in June. House prices fell by 0.9 per cent during the month, less than half of the rate of the 2.5 per cent fall recorded in May. However, the strength of house price growth up until last year means that prices are still 4 per cent higher than two years ago and 9 per cent higher than three years ago. “While we do not expect an early change in the bank Rate, the implications of inflationary pressure on funding rates are more stark. The two year swap rate, which is the underlying benchmark for the most popular types of mortgage, (two year fixed rate loans) has increased along with market expectations of increases in bank rates and this has resulted in more frequent mortgage repricing. The tightening of credit conditions over previous months along with changing expectations of house price growth and a general weakening in consumer confidence in the economy have hit mortgage demand and led to a severe slowing in the levels of housing market activity.”
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