UK house prices fell for the second consecutive month in August, by 0.9%, the first time prices have dropped for two months in a row since February 2009, according to Nationwide Building Society.
Annual house price inflation, comparing the current average price of all properties with 12 months ago, is now at 3.9%, down from the rates of 6.6% in July and 8.7% in June.
Of course, as we have said before, there is no single property market in the UK, and price inflation varies markedly between sectors, regions and even roads. However, even in London, the annual rate of property price rises has fallen from 21% in April to 16% in August, according to estate agent Knight Frank.
The cost of luxury property in central London fell by 0.1% in August, a decline which followed the 0.5% fall in July. After strong growth in the market since March, such a flattening of prices was generally expected, as the supply of property for sale has been rising and the number of active buyers falling over the summer period.
As buyers return from their holidays, demand is likely to increase once more, especially since the London economy is outperforming the UK average, with vacancies in the City and Canary Wharf markets up significantly year on year, and Credit Suisse paying a one-off bonus to 400 top executives.
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London property prices flat over the summer
UK house prices fell for the second consecutive month in August, by 0.9%, the first time prices have dropped for two months in a row since February 2009, according to Nationwide Building Society.
Annual house price inflation, comparing the current average price of all properties with 12 months ago, is now at 3.9%, down from the rates of 6.6% in July and 8.7% in June.
Of course, as we have said before, there is no single property market in the UK, and price inflation varies markedly between sectors, regions and even roads. However, even in London, the annual rate of property price rises has fallen from 21% in April to 16% in August, according to estate agent Knight Frank.
The cost of luxury property in central London fell by 0.1% in August, a decline which followed the 0.5% fall in July. After strong growth in the market since March, such a flattening of prices was generally expected, as the supply of property for sale has been rising and the number of active buyers falling over the summer period.
As buyers return from their holidays, demand is likely to increase once more, especially since the London economy is outperforming the UK average, with vacancies in the City and Canary Wharf markets up significantly year on year, and Credit Suisse paying a one-off bonus to 400 top executives.
This entry was posted on Tuesday, September 7th, 2010 at 4:05 pm and is filed under Commentary. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.