Nationwide has recently released data indicating the height of the housing market slowdown is possibly upon us.  House prices increased only 0.1% last month marking the slowest increase in house prices in 15 months.  The average price for a UK house is now £188,949.  Since this time last year, house prices have risen an average of £20,000, or almost 11%.

Nationwide commented on the slight rise in house prices and mentioned the slowdown could be simply a temporary occurrence.

Chief economist of Nationwide, Robert Gardner, discussed the current trend of house price increases, saying: "The slowdown was not entirely unexpected, given mounting evidence of a moderation in activity in recent months and there has also been some softening in forward looking indicators, such as new buyer enquiries."

Howard Archer of IHS Global Insight believes house prices will still increase more than 3% during the second half of this year.

Archer commented on the rise in house prices, saying: "We take the view that house prices will keep on clearly rising over the coming months but there will be some moderation from the recent peak levels.

"More stretched house prices-to-earnings ratios, the prospect that interest rates will soon start to rise, albeit gradually, and tighter checking of prospective mortgage borrowers by lenders will likely have some dampening impact on buyer interest.”

Archer continued: "Even so, with the economy seen holding up pretty well going forward, employment high and rising, consumer confidence elevated and earnings growth likely to improve, and with housing supply remaining tight in many areas, house price growth will probably slow gradually."