Nationwide: House prices edge 0.2% higher in July
The latest house price index from the Nationwide Building Society has revealed house prices crept up by 0.2% in July.
On an annual basis, house prices are now just 0.4% lower than this time last year with the average UK home costing £168,731.
The housing market remains subdued as a lack of buyers, together with the ongoing lack of mortgage availability, means demand for housing is weak.
The prediction for house prices in 2011 is for a slight fall as demand for housing is expected to stay weak as a result of the uncertainty surrounding the economy and the Government’s massive spending cuts.
The Nationwide’s chief economist, Robert Gardner, comments: “House prices remain relatively high compared to incomes and, together with more demanding deposit requirements, this is dissuading, or at least delaying, some first-time buyers from entering the market.”
Other reports are painting a similar story – the Halifax will publish its house price index next week.
In other news this week, the Bank of England said mortgage approvals rose slightly last month with 48,421 loans approved during the month, higher than the average of the previous six months of 45,850.