House prices are continuing to slow down as price growth in London remains slack. Figures re...
House prices are continuing to slow down as price growth in London remains slack.
Figures released today by Nationwide show that the slowing down of the housing market is continuing with prices up 0.9% in June compared with the average of 1.1% over the previous three months.
Nationwide' survey also predicts that UK price growth will remain unchanged at 10% for the rest of the year.
Last month saw a decline of 0.5% in price growth compared with previous month.
And annual house price inflation also slowed to 19% - a 2.1% drop compared with May.
This could mainly be seen in London were house prices growth slowed sharply, with annual house price inflation of just 15%.
According to Nationwide, this is a continuing trend as low pay and reduced job prospects as well as worsening affordability will reduce annual growth further in London during the rest of the year.
By contrast, price growth continued to remain strong in both the North East and Yorkshire & Humberside areas, with 30% plus annual inflation rates.
For the rest of the year, Nationwide predicts a 5-10% growth in the South East - excluding London, a 10-15% growth in the Midlands as well as a possible growth of 15% in the Northern regions.
Nationwide's group economist Alex Bannister says:
"A weaker UK labour market will provide a check on house price growth particularly where affordability is stretched. However, the next movement in interest rates is still likely to be down and any rise in unemployment looks modest by historical standards."
"Our forecast for UK price growth remains unchanged at 10% for the year. In contrast, we now foresee a thinner market, with house sales expected to fall by over 10% in 2003 although mortgage levels will remain strong, underpinned by high levels of remortgage activity."
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