House prices dip in third quarter

House prices fell this month for the first time since February, according to new figures.

Nationwide's monthly house price index revealed a decline of 0.5 per cent in July.

In addition, the annual rate of house price inflation fell from 8.7 per cent to 6.6 per cent.

Market activity remained at only half that seen before the recession, with fewer buyers willing to enter into the market.

Commenting on the figures, Nationwide's chief economist Martin Gahbauer said:"A combination of restrictive credit conditions and uncertainty about the future economic outlook continues to limit the pool of buyers to those with relatively large financial resources.

"Many potential buyers still lack the confidence to purchase their first home or trade up when faced with uncertainty over future income and employment prospects."
 

However, dropping demand could make this a good time for landlords to consider expanding their portfolios and investing in buy-to-let property insurance for their new homes.

Posted by Luella Ravelin

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