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House prices slip 0.6% in August

House prices slip 0.6% in August

Category: Mortgages

Updated: 01/09/2011
First Published: 01/09/2011

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 It is now over 6 months old so the content may be out of date.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 slipped by 0.6% in August, although the overall picture remains relatively stable.

Figures from Nationwide Building Society show that the average value of a property in the UK fell by 0.6% last month, taking the average price of a home to £165,914.

The market has remained on something of an even keel over the last 12 months.

Prices are broadly unchanged from August 2010, when they were just 0.4% higher than they are now.

In fact, the average price of a home has proven to be very resilient over the last two years.

Figures show that the measure has not fallen below £160,000 during the time, and has not jumped above the £170,111 mark.

Helping to underpin the levelling out of prices has been a sluggish demand for homes, which has combined with only a small upturn in the number of homes put up for sale.

This has been a key factor in prices remaining stable since last summer.

"We expect this trend to be maintained over the remainder of 2011, although downside risks have increased as UK and global growth prospects have weakened," commented Robert Gardner, chief economist at the building society.

Separate figures from the Financial Services Authority have revealed that the number of homes sold between
2 April 2010 and 31 March 2011 was the lowest level since the regulator began recording data in Q2 2005.

Overall, mortgage sales declined by 7% between 2009/10 and 2010/11.

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