According to Nationwide house prices rose by 3.5% in July this year, but firmly
believe tht the property market is finally stabalising.
Average UK house price are edging closer to the £200,000 mark, and the pace of growth again increasing in July by 0.4% month-on-month, which is an improved performance on June's 0.2% decline.
The past year, property prices have risen by 3.5%, compared with the 3.3% annual increase in last years house prices.
The average cost of a house in Britain is now at £195,621, up from £195,055 in June this year.
But mortgage lender Nationwide says that house price growth was beginning to stabilise, nearing the pace of earnings growth, at around 4%.
The outlook on the demand for homes remains encouraging. Employment growth has remained relatively robust in recent quarters, and, after a prolonged period of subdued growth, wages are also increasing. Consumer confidence is buoyant and mortgage rates are still albeit not for long close to all-time lows.
It still remains unclear whether activity on the supply side of houses will catch up with demand. The number of new homes under construction has now started to pick up, albeit from historically low levels, and further increases are required if a sustainable recovery in the housing market is to be maintained over the longer term.
According to Robert Weaver the director of property at Property Partner house prices are expected to rise more sharply from September, with sellers being likely to be in an increasingly strong position as the Autumn progresses, although this may slow if predictions of an interest rate rise happens.
Stamp duty changes have had an effect on the market, with house-buyers now paying the tax based on a tiered rate, which replaced the flat rate system.
The changes have led to less clustering of transactions at set tax thresholds, previously around the £125,000, £500,000 and £250,000 price points.
Overall, home buyers have also been better off since the stamp duty changes came into force.
Image Credit: Getty