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House prices drop 0.5% in July, says Nationwide
30/07/10
Edited by Andy Jowett.Residential property prices declined for the first time since February this month, according to the latest figures from Nationwide.
The mortgage lender said the cost of the average home dropped by 0.5 per cent compared with June to stand at £169,347.
Meanwhile, the annual rate of price inflation dropped from 8.7 per cent to 6.6 per cent, with Nationwide saying the "sizeable drop" had been amplified by the strong gains recorded in July 2009.
The building society's chief economist Martin Gahbauer said that despite record low interest rates and a second stamp duty holiday for first-time buyers, demand for property has been subdued throughout 2010.
He added that the number of transactions being completed across the UK has halved since the start of the financial crisis and the subsequent recession.
"Many potential buyers still lack the confidence to purchase their first home or trade up when faced with uncertainty over future income and employment prospects," Mr Gahbauer said.
Commenting on Nationwide's figures, the Royal Institution of Chartered Surveyors said they chime with its own research showing the supply of homes coming on to the market is now outstripping demand.
