1 Sep

Property market reports weak growth

Property market reports weak growth

The property market has seen a slowdown in growth, according to new figures from a key study.

A report from Nationwide Building Society revealed house prices increased by their slowest annual rate for almost two years.

In August, property values increased by 3.2 per cent, down from 3.5 per cent in July and the smallest annual growth since June 2013.

This means the average property price in the UK is now £195,279, but the annual pace of growth is around 33 per cent less than a year ago.

According to Nationwide, the slowdown in growth could be a sign that the property market could be stabilising in line with the growth in wages.

However, Robert Gardner, Nationwide's chief economist, stressed there is still a need for new homes to help meet demand.

He added: "With UK house building running well below the expected rate of household formation in recent years and with demand for homes rising, a significant increase in construction activity is required if affordability is not to become stretched in the years ahead."

The UK property market is continuing to outperform other European countries, as they remain below pre-recession levels by substantial amounts, including Ireland while values are 38 per cent lower, Spain 36 per cent lower and 18 per cent below in the Netherlands.ADNFCR-1222-ID-801799316-ADNFCR

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