House prices rise 3% in first half of the year

Commenting on the figures Martin Gahbauer, Nationwide’s Chief Economist, said:

“The month of June presented a picture of broad stability for the housing market. The price of a typical UK property rose by a seasonally adjusted 0.1% month-on-month (m/m), following a 0.5% increase in May. The smoother 3 month on 3 month rate of change rose marginally from 1.7% to 1.8%. By contrast, the annual rate of house price inflation dropped for the second consecutive month from 9.8% to 8.7%, reflective of the fact that house prices were increasing at a faster pace this time last year. Barring a significant pick-up in house prices over the next few months, the annual rate of inflation should continue to drift lower, in light of the very strong price increases recorded during the summer of 2009. Over the first half of 2010, UK house prices have risen by a cumulative 3.0%.

“Recent indicators point to an increase in the supply of property coming to the market for sale, perhaps in response to the abolition of HIPs in the opening days of the new coalition government. With the level of demand remaining broadly stable, this would in part help to explain the recent slowdown observed in the rate of house price inflation.”
 
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0 thoughts on “House prices rise 3% in first half of the year

  1. Gavin

    House prices are still extremely overvalued. With rising unemployment, end to stimulus, wage freezes house prices will fall to normal levels. We can not afford to keep this housing bubble inflated at the expense of greater public service cuts. All the house price surveys point to a big slow down and falls already. This will increase over the coming year.

    The crash will resume which is good news for future generations and bad news for property speculators.

  2. PHIL

    THERE IS NO LONGER A BUBBLE. THE COST OF BUILDING IS REASONABLY REFLECTED IN THE COST OF A HOUSE.COMMODITY MARKETS ARE REFLECTED IN THE COST OF A HOUSE AND THIS IS WHERE THE MATERIAL CHANGES TAKE PLACE. LABOUR COSTS ARE COMPETITIVE AND PROFITS IF ANY ARE BASED ON A TIGHT COMPETITIVE MARKET PLACE.ONE OF OUR REAL PROBLEMS IS THE LOSS OF OUR MANUFACTURING BASE TO ADMINISTRATION AND OTHER LEGISLATIVE INDUSTRIES .THIS PRODUCES VERY LITTLE IN THE WAY OF WORK FOR JOE .