Average house prices slip back, says Nationwide

Friday 29th June 2012

Average house prices in the UK slipped back 0.6% in June compared with May, to stand at £165,738 – 1.5% lower than a year ago.

Nationwide chief economist Robert Gardner said: “The slightly weaker trend we’ve observed since March is unsurprising, given the difficult economic backdrop, with the UK economy dipping back into recession at the start of the year and few signs of a near-term rebound.

“Part of the weakness in house prices may also relate to the ending of the Stamp Duty holiday in March.”

He added: “The outlook for house prices remains highly uncertain.”

Nationwide estimates that over 200,000 first-time buyers benefited from the two-year Stamp Duty break, saving around £1,800 each.

The lender also reported a highly fragmented marketplace, with property prices up 1% in London during the second quarter of this year, but down 4.1% in the North-West.