| CATEGORY: NEWS AND ANNOUNCEMENTS |
House prices slip in August |
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Thu 01 Sep 2005
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LONDON (SHARECAST) - House prices fell last month, according to the latest official survey, though the outlook remains positive with more expressions of interest from buyers.
The Nationwide reported a 0.2% fall in prices in August compared with a 0.2% rise the month before, while the annual rate of growth slowed to 2.3% from 2.6% the previous month.
The annual pace of growth is now at its slowest since May 1996, while the average UK asking price for a house is now £157,310 compared with £153,743 last year.
Nationwide's Group Economist Fionnuala Earley said, “Price inflation has slowed gradually, but is still positive, and activity has been creeping up since the end of 2004. The current levels of monthly house purchase approvals are now higher than at this time last year.”
Estate agents say sellers have been adjusting their asking prices, making it more of a buyers’ market and leading to more buyer enquiries and increased optimism about sales from estate agents, said Nationwide.
“Even though wage inflation is almost twice the rate of house price inflation, affordability is still an issue, particularly for first-time buyers, and it will take some time for the balance to be redressed,” added Fionnuala Earley.
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