House price inflation slows
News Category: Industry News
Published: 26-Jul-2007
House price growth slowed markedly in July, suggesting that landlords could look to pick up bargain property if they are planning on expanding their portfolio.
According to the latest figures from Nationwide, the monthly change in house prices between June and July was just 0.1 per cent.
This means that annual house price inflation dropped from 11.1 per cent in June to 9.9 per cent this month.
A landlord looking to buy a new property will now have to typically spend £184,270 - just £200 more than they would have had to in June.
Fionnuala Earley, Nationwide's chief economist, commented: "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.
"The three-month on three-month rate of growth - often a better indicator of the underlying trend of house price inflation - slowed to two per cent and resumed the downward path that had been interrupted in June."
However, Arla recently said that private rental accommodation could act as "a safety valve" for the market "at a time of mixed expectations for future strong rises in house prices".
