Date issued: 30 Aug 2007
FINANCIAL MARKET TURMOIL POSES RISKS FOR THE HOUSING MARKET
- House prices are unlikely to be significantly hit by market turmoil in the short term
- But dependence of UK economy on financial services poses a longer term risk
- Unexpectedly low inflation and financial market unrest has reduced the risk of a Bank Rate rise to 6%
| Headlines |
August 2007 |
July 2007 |
| Monthly index * Q1 '93 = 100 |
365.7 |
363.5 |
| Monthly change* |
0.6% |
0.1% |
| Annual change |
9.6% |
9.9% |
| Average price |
£183,898 |
£184,270 |
* seasonally adjusted
Commenting on the figures Fionnuala Earley, Nationwide's Chief Economist, said:
"The rate of house price growth lifted a little during August, but the annual rate continues to moderate. Prices increased by 0.6% during the month, but the annual rate fell to 9.6% down from 9.9% in July. A typical UK property cost an average of £183,898 in August, £16,177 more than one year ago."
For further information please see this month's full report (PDF - 52KB)
