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UK residential property prices static, data shows

The Nationwide monthly house price index published today (Friday July 29) increased by 0.2% in July meaning that the price of a typical home is £168,731, some 0.4% lower than a year ago.

Robert Gardner, Nationwide's chief economist said that sluggish demand for homes, combined with only a gradual rise in the supply of available properties, has helped to keep property prices relatively stable in the last 12 months.

‘This pattern was maintained in July, with UK house prices rising by a modest 0.2% during the month, leaving prices 0.4% below the level prevailing in the same month of 2010. At 0.3%, the three month on three month measure of house prices was little changed from the 0.4% rate of increase recorded in June,’ he explained.

‘The volume of property transactions has also remained at historically low levels in recent months. Only 204,000 housing transactions were recorded in the second quarter of 2011, the lowest out turn since the second quarter of 2009. No doubt much of this reflects the uncertain economic climate.

However, some commentators have suggested that there may be more fundamental factors at play, such as a trend away from owner occupancy,’ he added.

Meanwhile, according to the June data from the Land Registry's flagship House Price Index there was no changes in prices between May and June. It also shows an annual price decrease of 2.5% which takes the average property value in England and Wales to £161,479.
The only region in England and Wales to experience an increase in its average property value over the last 12 months is London with a movement of 0.8%. Wales experienced the greatest monthly rise with a movement of 2.8%. The North East experienced both the greatest annual price fall with a decrease of 7.1% and the most significant monthly price fall with a fall of 2.1%.

The most up to date figures available show that during April 2011, the number of completed house sales in England and Wales decreased by 7% to 48,704 from 52,272 in April 2010. The number of properties sold in England and Wales for over £1 million increased by 45%  between April 2010 and April 2011, from 549 to 798.