Nationwide: house price growth picks up pace in July
Latest index shows house prices on the rise.
UK house price growth picked up slightly in July, according to the latest Nationwide House Price Index.
The building society says prices increased by 0.4%, following a 0.2% fall in June. As a result annual house price growth edged up from 3.3% to 3.5%.
The average cost of a UK home is now £195,621, according to the index.
How prices have changed
Here’s how house prices have changed over the past year, according to Nationwide.
|
Month |
Monthly change % (seasonally adjusted) |
Annual % change |
Average house price |
|
July 2014 |
0.1% |
10.6% |
£188,949 |
|
August 2014 |
0.8% |
11.0% |
£189,306 |
|
September 2014 |
-0.1% |
9.4% |
£188,374 |
|
October 2014 |
0.6% |
9.0% |
£189,333 |
|
November 2014 |
0.3% |
8.5% |
£189,388 |
|
December 2014 |
0.2% |
7.2% |
£188,559 |
|
January 2015 |
0.4% |
6.8% |
£188,446 |
|
February 2015 |
-0.1% |
5.7% |
£187,964 |
|
March 2015 |
0.1% |
5.1% |
£189,454 |
|
April 2015 |
1.0% |
5.2% |
£193,048 |
|
May 2015 |
0.2% |
4.6% |
£195,166 |
|
June 2015 |
-0.2% |
3.3% |
£195,055 |
|
July 2015 |
0.4% |
3.5% |
£195,621 |
What's happening to house prices?
Nationwide says there are tentative signs that annual house price growth may be stabilising close to the pace of earnings growth, which is historically around 4%.
However, the building society says this depends on building activity keeping pace with increasing demand.
Lower unemployment, wage growth and low mortgage rates means demand is more buoyant. But the building society says it’s still unclear whether the number of properties for sale will catch up.
The number of new homes being built has picked up but further increases are required if a sustainable recovery in the housing market is to be maintained, Nationwide says.
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