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Nationwide House Price Index Shows Growth Slows

30.09.14

This morning Nationwide released their latest House Price index which showed that in September at least, house prices had fallen by 0.2%, with annual house price growth slowing to 9.4%.

Over the quarter however, all regions saw more gains but it was the pace of these gains which shows the market is easing. In London annual price growth slowed from 25.8% in Q2 to 21% in Q3.

Whilst we have still seen some extraordinary house price growth across the quarter it is pleasing to see that the pace of change has slowed, particularly in London.

This change of pace should hold steady for the foreseeable future as the move from a sellers to a buyers market is evident in many London areas.

Although mortgages continue to be available at exceptionally low rates, issues around affordability and the inevitability of future interest rate rises have made borrowers more cautious about paying over the odds for property.

Meanwhile at the top end of the market, the threat of policies such as the Mansion Tax have slowed activity further.

All of this points to a distinct sea change in the housing market which should make for a more sustainable market going forward.

The full release can be read here.

 

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Andrew Montlake

Written by Andrew Montlake

Andrew Montlake, better known as Monty, began his journey with an Hons degree in Economics & Politics before starting in the mortgage industry in February 1994. As a main founder of Coreco in 2009, he successfully grew the brand, marketing, and communications, and was made MD in 2019 focussing on the overall vision, strategy, and culture of the company. As Coreco’s media spokesperson, Andrew can often be seen or heard on TV and radio as well as regularly commenting in the national, local, and trade press. He is the author of this acclaimed Mortgage Blog and is well-known for his social media, podcasts, and public speaking. Andrew is now proud to serve as Chairman of the Association of Mortgage Intermediaries, (AMI) as a cheerleader for the Mortgage Industry as a whole and continues to work at the coal face, writing mortgage business and advising clients.

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