Date issued: 30 Jan 2007
FIRST SIGNS OF COOLING EMERGE
- Prices increase by just 0.3% in January, the lowest monthly rise for eight months
- House prices in 2007 expected to remain firm in spite of rate rises
- A further 0.25% rise in rates cannot be ruled out
| Headlines (provisional) |
January 2007 |
December 2006 |
| Monthly index *Q1 '93 = 100 |
349.9 |
348.9 |
| Monthly change* |
0.3% |
1.2% |
| Annual change |
9.3% |
10.5% |
| Average price |
£173,225 |
£173,746 |
*seasonally adjusted
Commenting on the figures Fionnuala Earley, Nationwide's Chief Economist, said:
"2007 started off with a bang as the Bank of England raised interest rates for the third time in six months. Only time will tell how much the surprise decision will affect sentiment in the housing market, but even before January's rate rise there were already some very early signs of cooling. House prices increased by just 0.3% in January, the smallest monthly rise since May last year, which pulled the annual rate of house price growth back into single digits. Prices increased at an annual rate of 9.3% in January, down from 10.5% last month. The price of a typical house now stands at £173,225."
For further information please see this month's report (PDF - 50KB).
