House price growth stalled in July, bringing annual growth back down into single digits
A rise in interest rates to 6% is firmly on the horizon, but weak household income growth and mortgage payment shocks highlight the risk of monetary overkill
The Housing Green Paper is a welcome step on housing supply but, as the recent flooding shows, the challenges ahead are substantial

Headlines	July 2007	June 2007
Monthly index * Q1 '93 = 100	363.5	363.2
Monthly change*	0.1%	1.1%
Annual change	9.9%	11.1%
Average price	£184,270	£184,070

* seasonally adjusted

Commenting on the figures Fionnuala Earley, Nationwide's Chief Economist, said:

“After surprisingly picking up steam in June, house prices were almost unchanged in July, and their underlying trend growth resumed a downward path.

“House prices managed a seasonally adjusted gain of only 0.1% in July, the slowest pace of growth since April 2006. The marked slowdown brought the annual rate of house price inflation down to 9.9%, following three consecutive months of double-digit growth. A typical UK property cost an average of £184,270 in July, £16,537 more than one year ago. The three-month on three-month rate of growth – often a better indicator of the underlying trend of house price inflation – slowed to 2.0% and resumed the downward path that had been interrupted in June.”

For further information please see this month's full report (PDF - 48KB)

Nationwide Archive

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