House prices only went up 0.1% in July, the Nationwide reports.
The mortgage lender highlights that this is the lowest monthly increase since April 2006, seeing annual growth dropping to 9.9%. The average UK property costs £184,270 now, £16,537 more than a year ago.
House prices picked up steam in June and remained virtually unchanged in July, with the underlying trend growth being downwards. The quarterly growth rate, which Nationwide considers a better indicator for house price growth, shows that prices are up only 2%.
The decline in July's house prices could be due to potential homebuyers thinking twice about overstretching themselves in a higher interest rate environment. With there being a possibility of yet another interest rate rise in the summer, the Nationwide is urging the Bank of England to act cautiously.
Many Brits are about to come off fixed rate mortgages agreed when interest rates were much lower.
Since August 2005 just under 70% of borrowers have taken out fixed rate mortgages, with the majority having deals of two to three years. Over the next 18 months, 2million borrowers are going to see their fixed rate deals finish, rendering them with the choice of reverting to the standard variable rate or remortgaging onto a tracker or a new fixed rate mortgage .
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Lowest House Prices in Over a Year
Thu, 26 Jul 2007
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