Nationwide index shows prices fall 0.6%, the first drop since April

UK house prices have fallen for the first time since April amid uncertainty over the UK鈥檚 economic outlook according a Nationwide survey.

The 黑洞社区 Society鈥檚 House Price Index showed that house prices fell by 0.6% in August, and are 0.4% lower than the same time last year.

The average price of a UK home fell 拢2,817 from 拢168,731 to 拢165,914 over the month.

Robert Gardner, Nationwide鈥檚 chief economist, said that sluggish demand has helped keep house prices stable. 鈥淪luggish demand for homes, combined with only a gradual rise in the supply of available properties, has helped to keep property prices stable since last summer. We expect this trend to be maintained over the remainder of 2011.鈥�

Gardner noted that the weak economic outlook in the UK and the slowdown in the US could dampen demand in the long term, but prices are expected to remain relatively stable.

鈥淭he UK economy grew by just 0.2% in the second quarter of the year 鈥� well below its long-term trend rate of around 0.7%,鈥� Gardner said. 鈥淚ndeed, despite being more than eighteen months into the recovery, UK activity is still around 4% below where it was at the end of 2007.鈥�

Nationwide also said that house prices increased by 0.1% over the less volatile three-month measure, though this was lower than the 0.3% rise seen in the previous three months.

The Nationwide House Price index is based on the number of mortgages approved by the 黑洞社区 Society over the previous month.

Topics