Nationwide reveal house price rise of 0.9%

by Richard Kilner

Story link: Nationwide reveal house price rise of 0.9%

The Nationwide Building Society has indicated that house prices in June rose by 0.9% compared to the previous month.

This means that the average home in the UK is now worth £156,442.

However, the annual change remains a sharp decline of 9.3% compared to June 2008.

Despite this it does mark the first time since mid-2008 that the fall in annual house prices has been in single figures, according to Nationwide’s chief economist, Martin Gahbauer.

Homeowners are currently benefiting from record low interest rates, presently 0.5%, which have meant mortgage-holders have enjoyed substantial savings.

However, the economic news is not all good today. The BBC has reported unexpectedly bad quarterly growth figures have been released, revealing a decline in GDP of 2.4%, the largest drop in over 50 years.

The decline was 0.5% worse than forecasts had estimated, but despite that Chief Secretary to the Treasury Liam Byrne has stated the Government will not revise its 3.5% GDP prediction for the entire year.