House price growth has slowed down

derelict houses House price growth is now at their slowest for a year, according to Nationwide. They reckon that house price inflation fell to 7.2% in December, down from 8.5% in November.

Nationwide believes that the housing market will pick up in the next few months though, which is a bit optimistic seeing as hardly anyone can actually afford a mortgage.

Monthly house prices rose by 0.2% in December, taking the average house price up to £188,559.

Let's hear what Nationwide's chief economist, Robert Gardner said: "The pace of annual house price growth continued to soften as 2014 drew to a close,"

He continued that the slowdown in the housing market was "surprising given further steady gains in employment, a pickup in wage growth (albeit from low levels) and the continued low level of mortgage rates"

"If the economic backdrop continues to improve as we and most forecasters expect, activity in the housing market is likely to regain momentum in the months ahead," he added.

Let's look at a chart of the Annual change in house prices

Region Annual change Average price

London 17.8% £406,730
Outer Metropolitan 12.7% £301,612
Outer South East England 10.6% £235,538
East Anglia 9.8% £194,212
Northern Ireland 8.1% £120,685
South West England 8% £210,847
West Midlands 6.8% £164,406
East Midlands 6% £155,747
North England 4.4% £121,486
Scotland 4.2% £142,527
North West England 3.8% £145,212
Yorkshire and the Humber 1.5% £142,816
Wales 1.4% £141,631

Source: Nationwide Q4, 2014

What do you think?

Your comment