The latest House Price Index from Nationwide shows that prices fell by 0.5% in July – the first fall since February. The seasonally adjusted price of a typical UK property is £169.347.

Says Martin Gahbauer, Nationwide’s chief economist, “So far in 2010, demand from homebuyers has made little progress in building upon the recovery seen during much of 2009. Despite the introduction of a second stamp-duty holiday for the vast majority of first-time buyers and record low interest rates, the number of properties changing hands across the UK is still running at only half the levels seen prior to the financial crisis and recession.”

 

Indications are that the chronic shortage of properties for sale, which had pushed up prices, has been eased, owing to a number of factors. These include the abolition of HIPs, which has led to an increase in speculative sellers testing the market, as well as potential sellers who had been forced to rent out their properties now looking to sell.

This may also explain the current quick turnaround of properties for rent in the popular London, Surrey and Home Counties locations, accommodating inbound international assignees and UK relocatees moving ahead of the new academic year. As ever in the relocation situation, lower house prices are a double-edged sword for those on the move, depending on where they are moving to and their ability to sell their own property first.

Martin Gahbauer comments, “ At the moment, the market is clearly easing relative to the tight supply conditions that characterised it since early 2009. However, it will take several more months to establish whether house prices are now simply oscillating around a flat price trend, or whether a period of downward trending prices may be in store.”

Access the House Price Index at www.nationwide.co.uk/hpi