UK house prices rose by 3.2% year-on-year in August, according to the latest survey from mortgage provider Nationwide. That is the weakest annula pace rsince June 2013, and marks a slight slowdown from July. Month on month, prices rose by 0.3% in August, compared with 0.4% the month before.
One reason why house price inflation has apparently weakened is a rapid growth in prices at this time last year, the Nationwide said.
“This month’s data provides further evidence that annual house price growth may be stabilising close to the pace of earnings growth, which has historically been around 4%,” said Robert Gardner, Nationwide’s chief economist.
“Clearly house price trends are determined by a wide range of factors, but labour market developments are amongst the most important,” he added.
With demand for homes rising, new home construction needs to increase to keep houses affordable, he said.
The above text is taken from BBC News and it’s always interesting to see what reasoning and comment the industry has. On a personal level I believe it is important to note that the market is still increasing but at a more moderate level. We all want stability and growth in the property market but at a sensible level. Excesses are dangerous. Consistent steady growth is vital not just to the property industry but to the economy and businesses alike.