The pace of UK house price growth has slowed in August, according to the latest Nationwide House Price Index.
The building society says prices increased by 0.3% this month, compared to a rise of 0.4% recorded in July.
The dip means annual house price growth has edged down from 3.5% to 3.2% - the weakest since June 2013.
The average price of a UK home is now £195,279, down from £195,621 in July according to Nationwide.
How house prices have changed
Here’s how house prices have changed over the last 12 months, according to Nationwide.
|
Month |
Monthly change % (seasonally adjusted) |
Annual % change |
Average house price |
|
August 2014 |
0.8% |
11.0% |
£189,306 |
|
September 2014 |
-0.1% |
9.4% |
£188,374 |
|
October 2014 |
0.6% |
9.0% |
£189,333 |
|
November 2014 |
0.3% |
8.5% |
£189,388 |
|
December 2014 |
0.2% |
7.2% |
£188,559 |
|
January 2015 |
0.4% |
6.8% |
£188,446 |
|
February 2015 |
-0.1% |
5.7% |
£187,964 |
|
March 2015 |
0.1% |
5.1% |
£189,454 |
|
April 2015 |
1.0% |
5.2% |
£193,048 |
|
May 2015 |
0.2% |
4.6% |
£195,166 |
|
June 2015 |
-0.2% |
3.3% |
£195,055 |
|
July 2015 |
0.4% |
3.5% |
£195,621 |
|
August 2015 |
0.3% |
3.2% |
£195,279 |
Source: Nationwide
What’s going on with house prices?
[SPOTLIGHT]Nationwide says the latest figures show that annual house price growth may be stabilising close to the pace of earnings, which has historically been around 4%.
But the building society warns the balance won’t be maintained unless construction on new homes accelerates.
In July, surveyors reported the lowest number of properties on their books since their records began in 1970, whilst new buyer enquiries picked up.
Read RICS: Government failing to tackle property drought for more.
But Nationwide says UK house prices have been remarkably resilient in recent years, compared to other countries impacted by the financial crisis.
UK house prices are currently around 5% above their pre-crisis levels, compared to Ireland (-38%), Spain (-36%) and the Netherlands (-18%).
Nationwide points out that though house price trends are influenced by a wide range of factors, labour market movements are among the most important. The strength of the UK labour market in recent years is a key reason why house prices have recovered more quickly.