View more on these topics

Property prices at record high, says Nationwide

The latest Nationwide House Price Index has shown that property prices shot up yet again during July as the booming property market showed little sign of slowing down.

Nationwide said that although the rise was slightly weaker than June&#39s 3.3%, it was above the average increase for the past six months of 2.1%.

Annual house price inflation for the year to the end of July was 21%, which is the highest rate since 1989.

The average cost of property nationally is now £108,818.

This news comes despite recent reports that there could soon be a slowdown in the housing and lending markets. On the contrary, research found that there was a severe shortage of properties on estate agent&#39s books.

Alex Bannister, Nationwide&#39s group economist, says: “While the price of equities and goods on the high street both fell in the last month, property prices continued to rise strongly. Despite the latest data for June, showing mortgage lending and house sales declining sharply, it is farfrom clear that this is the beginning of a sustained downturn.

“Not only did June have significantly fewer working days than May because of the Jubilee Celebrations, but the World Cup may also have interrupted homebuying.”

Despite the survey&#39s findings, Nationwide say that for the future conditions for consumers could deteriorate modestly, with higher interest rates and slower income growth likely during the next year. Along with affordability constraints, it predicted, should ultimately lead to a slowing in house price growth.

Recommended

Lenders should control data

From George DoddsSourcing systems will always be the fallguys for mistakes unless lenders are responsible for the data provided.We took a conscious decision not to use any of the established sourcing systems because the accuracy of data is a big issue for us. We developed our own in-house system, Mortgage Pro, which each of our […]

Better buy a Bully bonus

Bradford Bulls Rugby League Club has announced that it is to launch its own financial services arm.Bradford Bulls Financial Services will operate in conjunction with RBR Insurance Group. BBFS will be officially launched on August 2. The package, which includes deals on mortgages, loans, life assurance, healthcare plans and savings accounts, has been designed to […]

French property is value for money

Value for money tops the list of reasons why the UK has become a nation of Francophiles, research from Abbey National France reveals. The French Tourist Office says that Brits are fuelling the economy by buying property &#45 despite the traditional love-hate affair between the two countries. And Abbey National France say that because the […]

HSHL sets its sights on signing 100 packaging partners by end of 2002

High Street Home Loans is seeking strategic alliances with up to 100 packaging companies by the end of the year. Traditionally the company has used mortgage brokers as its primary sales vehicle. This will remain an important part of the HSHL strategy going forward. However, the company&#39s new plans include increasing the number of packaging […]

Newsletter

News and expert analysis straight to your inbox

Sign up