The July Nationwide House Price Index (HPI) shows that the average house price is continuing to fall and was down -0.7% over the month. The UK average house price is therefore £164,389
This is the 4th fall over the last 6 months and the 3 month average changes was recorded at -0.9%, the same as last month. Annually this works out as -2.6% lower than the same time last year – July 2011.
Commenting on the figures, Robert Gardner, Nationwides Chief Economist, said:
“UK house prices declined for the fourth time in five months in July, with prices falling by 0.7%. This pushed the annual pace of price growth down to -2.6%, from -1.5% in June – the weakest outturn since August 2009.
The weaker price trend observed in recent quarters is unsurprising, given the disappointing performance of the wider economy. Data released last week revealed that the UK recession intensified in the three months to July, with the economy contracting by 0.7% q/q. This disappointing outturn can be only partly explained by unusually wet weather and the impact of an extra bank holiday during the quarter. Indeed, the UK economy has contracted by 1.4% over the past nine months, and is now 4.5 percentage points smaller than it was in Q1 2008.”
An interesting comparison was also provided by the Nationwider against some other countries in relation to their peak values. Within the UK we are approximately 13% below the peaks of 2007. However in comparison to other economies with simialr or more robust recoveries this is much better.
The Netherland is more aorund 14-15% below the peak, USA is approximately 17% below and Spain is 22-23% below the peak.