UK Housing market slows down
Written by JDPGlobal | Monday, 18 July 2005
It is being heard that housing market is slowing to fall behind the rate of any of the average earnings growth which is a first since 2001, this is reported as house price inflation rose by only 6% this month, compared to 6.9% last month.
While growth rates annualy are generally slowing, it was announced that the average house price here in the UK actually rose slightly in May, to £182,651, compared with £181,832 shown in April.
While the Nationwide Building Society showed that the house prices increased by 4.1% in the last 12 months to June, it was the average price rise that compared to last years 1.3% was shown to be only 0.5%. This fall in the UK property market, along with recession in the retail market has forced some of the analysts to suggest that interest rates may need to be cut.
Region
There were the expected regional differences, which clearly were reflected in the house price inflation index, this mainly varied between north and south of the country and while the annual house price inflation is less than 4% in the south and south west of England, it is at 10% in Scotland, Wales, Yorkshire, the North West and north east of England.
The annual house price inflation even fell from 2.7% in April to 1.6% during the month of May, in London.
