The figures from Assetz, which attempts to provide a comprehensive view of the housing market by compiling figures from the five leading house price indices (Halifax, Nationwide, RightMove, CLG House Price Index, Acadametrics), confirm that the average rate of property price growth is slowing as was widely predicted for the second half of this year.
The figures indicate a stable housing market, with the six month rolling average house price inflation figure now showing 4%.
Annualised average data shows that UK house prices have reached more sustainable levels, compared to the large fluctuations witnessed earlier this year.
Stuart Law, chief executive of Assetz, said: “UK house price growth continued to slow in July, however, prices remain strong despite the very minor slip in month on month figures – indicative of the usual summer slowdown and as a result of the much greater than normal confusion over the election period. Average house prices are now only 6.6% below their peak and have climbed by over 3% for the year to date.
“The latest house purchase lending data from the CML also reveals a continued rise in the number of new loans being advanced, pointing to continuing demand from buyers. With the base rate expected to remain at 0.5% for the foreseeable future, even more will be encouraged back into the market, especially now that the economy continues to recover more strongly than predicted in this low interest rate environment.
“The government’s austerity measures are likely to hold down house price growth in 2011 but we are yet to see these cuts reflected in the monthly data. Continued low interest rates and a lack of supply will boost prices this year and for this reason, contrary to most commentators, I still expect to see 5% overall growth for 2010.”
