House price inflation slows

3rd June 2016

House price inflation slowed in May to a rate of 4.7% a year, according to Nationwide Building Society, but it added that a more prolonged slowdown is unlikely. The monthly increase in May was 0.2%, the same as April, helping to cut the annual rate from 4.9%. The average price for a home in the UK is now £204,368. Investors in the buy-to-let and second home sectors rushing to beat April’s stamp duty increase drove up demand in March, which has since dropped substantially, Nationwide said. Meanwhile, house prices in Greater London have breached £600,000 for the first time – 14% higher than a year ago and an increase of 7.9% on the previous quarter, according to analysis of Land Registry data by wealth manager London Central Portfolio. It claimed record low mortgage rates and decreases in the cost of stamp duty on properties costing less than £937,000 are helping to push up demand.

The Times (01/06/2016)   Daily Mail (03/06.2016)