House price growth faltering in UK
House prices across the UK have started to decline, after months of growth have started to falter leading to a reduction across most of the UK's region in the price of properties for sale, showing that the UK property market is not in as good shape as previously thought.
The newly released data from Nationwide has shown that nine regions in the UK out of the 13 which are measured by the bank have posted results indicating falling house prices in the three month period between April and June of this year.
It also said that there remains a north/south divide across the country, with those in the south continuing to show much better levels than their northern counterparts.
The average price of a house in the UK now sits as low as £164,955, which puts the cost one per cent lower than it was in the previous three-month period.
As well as this, the price of homes has fallen by a full 1.1 per cent when compared to the same quarter in 2011.
Robert Gardner, Nationwide's chief economist, said: "The north/south divide amongst the English regions continued in Q2, with house price growth in southern England (South West, Outer South East, Outer Metropolitan, London and East Anglia) exceeding that of northern England (West Midlands, East Midlands, Yorkshire & Humberside, North West and North) for the thirtieth consecutive quarter. The North West was the worst performing English region, with prices down 4.1 per cent year-on-year.
"Scotland was the worst performing area on a quarterly basis, with prices falling 2.0 per cent during the second quarter. This pushed the annual rate of change down to -2.3 per cent."
As well as this, the findings also showed that there are now a record number of younger people who are staying with their parents because they simply cannot afford to buy their own home in the current market.
Nationwide said that the number of youngsters living at home now is 20 per cent higher than it was when recorded in 1997. Much of this can be credited to the fact that there is an increase in the size of deposit now needed to buy a home, which can be as high as 20 to 25 per cent of the home's value.
Posted at 01:25 28/06/2012