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House prices rise by 3% in 2010 so far

House prices rise by 3% in 2010 so far

Category: Mortgages

Updated: 30/06/2010
First Published: 30/06/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
House prices increased by 3% in the first six months of the year, but soaring values are beginning to slow down.

In June, the price of an average UK property has edged up by 0.1%, taking the value of a typical home to £170,111, up from £169,162 in May.

This latest gain means that in the first half of 2010, homeowners can have expected their property to rise by 3% in value, according to Nationwide.

However, these gains appear to be slowing down, as the annual rate of price growth fell from 9.8% to 8.7%, reflecting the fact that values were growing at a faster pace this time last year.

Yearly comparisons are likely to continue to show a slowing of price rises over the next few months.

One of the contributing factors to the strong rebound in house prices since the economic downturn began has been the lack of housing stock.

The recent abolition of home information packs has partly negated this, however, as putting a home up for sale has fallen in cost and is now a simpler process.

Martin Gahbauer, chief economist at the building society, said that recent indicators point to an increase in the supply of property coming to the market.

"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."

The slowdown in prices may well convince some potential home buyers to the market.

If its fixed rate you're after, amongst the best two mortgages currently available are a deal from The Co-operative Bank at a rate of 2.95% and a deal from HSBC at 2.99%.

Yorkshire BS also offers a two year fixed rate mortgage deal at 3.05%.

Amongst the best variable rate mortgages on the market is HSBC's 2.39% tracker, while ING Direct offers a rate of 2.84% for the term.

Find the best mortgage rate - Compare best selling mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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