Nationwide: Annual house price inflation falls to 9.9%

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Nationwide: Annual house price inflation falls to 9.9%

Thu 26th Jul 2007

The growth of house prices has dropped to 9.9 per cent, according to Nationwide, following three months of constant growth.

Pace of growth in house prices in July was slowest that it has been since April of last year.

And many have forecast that the monetary policy committee of the Bank of England is to raise the base interest rate again to six per cent.

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 per cent in July, the slowest pace of growth since April 2006.

In July of this year, the average house price is £184,270, which is £16,537 more than at the same point last year, Ms Earley added.

Currently the inflation rate is well above the two per cent target set by the government.

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