27th August 2015
The pace of annual house price growth retreated in August to 3.2% from 3.5% in July according to Nationwide.
The mortgage provider’s house price index highlighted that it marked the weakest growth rate since June 2013.
In terms of month-on-month gains, prices rose by just 0.3% compared to 0.4% in July, taking the average house price to £195,279.
Commenting on the figures, Robert Gardner, Nationwide’s chief economist said: “This month’s data provides further evidence that annual house price growth may be stabilising close to the pace of earnings growth, which has historically been around 4%
“However, survey evidence cautions that this trend may not be maintained unless construction activity accelerates. Surveyors reported the lowest ever number of properties on their books in July whilst new buyer enquiries picked up.”
Gardner warned that with UK house building running well below the expected rate of household formation in recent years and with demand for homes rising, a significant increase in construction activity is required if affordability is not to become stretched in the years ahead.
However the latest data from the building society are in stark contrast to the numbers put out by Halifax earlier this month, which reported that prices increased at an annual rate of 7.9% last month, a drop from 9.6% in June.