House prices fell 0.2% in January
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UK house prices fell 0.2% in January according to Nationwide’s latest house price index, taking the annual rate of inflation down to 0.6% from 1% in December.
The average house price now stands at £162,228, although this is up compared to January last year when the average price stood at £161,211.
Nationwide’s chief economist Robert Gardner says that with the flow of properties coming onto the market still more of a trickle than a flood, house prices are likely to continue to move sideways or only modestly lower in the months ahead.
He says: “The weakness in buyer demand is partly a reaction to the uncertain outlook for the economy, especially the labour market.
“But affordability is also part of the explanation – in particular, finding a sufficient deposit.
“This is partly due to the fact that house prices are still historically high compared to peoples’ incomes, and because credit conditions are less easy than before the financial crisis.”
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