Nationwide’s house price index for June has pointed to a slight rise in house prices again and the average house price breached the £170,000 mark. According to the lender, prices have risen over the first half of the year by a cumulative 3%.
However it is important to put the figures into context and the tone of Nationwide’s data is generally more cautious. The monthly change for June was just 0.10% and the annual rate of house price inflation fell from 9.8% to 8.7%. So this data represents broadly stable numbers rather than suggesting an inexorable rise in prices.
In fact, Nationwide points to the fact that the annual rate of inflation is likely to drift down due to the fact that house prices kicked upwards more rapidly last year. The market has risen on the back of limited supply of stock and although confidence has improved it’s better to read these figures as evidence of a more stable market rather than one about to go back into orbit.