House price growth slows amid slowdown in wider economy


On a month-by-month level, house prices fell 0.1pc in August


On a month-by-month level, house prices fell 0.1pc, compared to growth of 0.2pc in the previous month.

  House price growth slows down -  August was a part of a wider cooling of the housing market and the UK economy, according to the latest figures from Nationwide. The building society said the annual pace of house price growth fell to 2.1pc in August, down from 2.9pc in July. Robert Gardner, Nationwide's chief economist, said the drop was consistent with signs of cooling in the housing market and the wider economy. He added that growing pressure on household budgets had weakened consumer sentiment, despite the unemployment rate falling to its lowest rate for more than 40 years. Ultimately, housing market developments will depend on wider economic performance, he said. The UK economy slowed noticeably in the first half of the year, and there has been little to suggest a significant rebound in the months ahead.   House Price Growth SlowsHouse Price Growth Slows - The annual pace of house price growth fell to 2.1pc in August.   While employment growth has remained robust, household budgets are under pressure. This suggests that housing market activity will remain subdued. In June, the number of approved mortgages fell to a nine-month low of around 65,000, and Mr Gardner added that surveyors have reported a slowdown in the number of enquiries from new buyers. Ed Stansfield, the chief property economist at Capital Economics, said the market is also being held back by a more cautious approach from lenders. We suspect that already-high level of prices is also weighing on demand, as growing numbers of households find themselves priced out, he said. We expect the economy to strengthen a little in the second half of the year. But it is less clear that, as rate rises move back on the agenda, lenders will reverse their recent, more cautious approach. Nationwide's figures also show that revenues from stamp duty reached an all-time high of £12.8bn in the year to June, more than £2bn higher than the previous record of £10.6bn in 2007. Nationwide said higher house prices and the introduction of the 3pc levy on purchases of second homes were the primary reasons for the rise.   Source: 

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