The Nationwide House Price Index Says House Prices Fell in July
The average house price sits at 169,347 pounds now after the Nationwide house price index reported a fall in prices of 0.5 per cent in July.
Martin Gahbauer, Nationwide Chief Economist, said: "A combination of restrictive credit conditions and uncertainty about the future economic outlook continues to limit the pool of buyers to those with relatively large financial resources." He added, "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. With the interest rates remaining where they are, remortgage is still a great option." An increase in the supply of houses is another factor driving prices down. There is no longer a severe shortage of properties for sale. Even some buy-to-let landlords are trying to sell their properties, shifting more properties to the sell side. Gahbauer said: "The market is clearly easing as opposed to the tight conditions of 2009. However, it will take several months to establish for certain if this is a period of downward trading prices or not." Halifax has reported a fall in house prices every month since April. Their July figures are not due out until next Thursday.