Latest quarterly figures show sustained property prices growth in most of UK

 
June presented a picture of broad stability with prices inching up by a seasonally adjusted 0.1% month-on-month, following a 0.5% increase in May, the latest index from Nationwide shows.
   
The smoother quarter on quarter rate of change rose marginally from 1.7% to 1.8%. By contrast, the annual rate of house price inflation dropped for the second consecutive month from 9.8% to 8.7%, reflective of the fact that house prices were increasing at a faster pace this time last year, it also shows.
 
The South West of the country shows strongest regional growth over the quarter while London has the strongest growth overall, the latest quarterly index from Nationwide shows.
 
Overall UK house prices increased by 1.9% quarter-on-quarter in the second three months of the year. It means the annual growth rate was 9.5%, up from 8.8% recorded in the first quarter of 2010.
 
The South West of England saw the strongest growth in the quarter, with prices up by a seasonally adjusted 3.0%, and up 12.5% annually. Greater London continued to be the best performing region on an annul basis with prices up 13.2% on the second quarter of 2009.
 
Northern and midland regions generally saw weaker growth than the southern regions. The East Midlands saw the weakest growth out of the English regions, with quarterly price growth of 1.2%.
 
‘Despite a better performance this quarter, the North remained the weakest region on an annual basis, with prices up 6.0% year-on-year. The Outer Metropolitan region retained second place behind London, with annual growth of 12.9%, following a 2.3% increase over the quarter,’ said Martin Gahbauer, Nationwide’s Chief Economist.
 
The index also shows that annual house price growth in Scotland picked up from 5.6% in the first quarter to 7.2%, but remained below the UK average. Quarterly price growth in Wales was similar to the rest of the UK, with a 1.8% rise in the quarter. However, on an annual basis, Wales was the second weakest region with prices up only 4.7% year-on-year.
 
‘Northern Ireland experienced another weak quarter, with the quarterly rate of change falling from -1% to -5.7%. On an annual basis, house prices were down 5.2%, a slight deterioration from the 3.0% year-on-year fall in the first quarter. Northern Ireland remained the worst performing UK region,’ Gahbauer added.
 
‘Recent indicators point to an increase in the supply of property coming to the market for sale, perhaps in response to the abolition of HIPs in the opening days of the new coalition government. With the level of demand remaining broadly stable, this would in part help to explain the recent slowdown observed in the rate of house price inflation,’ he explained.