Yo Yo Skills - Doing the UK House Prices
30 September 2011
According to the latest release of data from the Nationwide building society, UK house prices were relatively flat in September. The index registered a drop of 0.1% on the month, compared to the 0.6% decline in August. The steady growth in the Nationwide index means that it now has house prices at just 0.4% lower than September last year.
The Halifax index told a different story in August, when it recorded a month on month drop of 1.2%, leaving prices 2.4% lower than August 2010. The Halifax index is showing that the decline in UK house prices, which had accelerated in the second half of 2010 into this year, is now slowing once again.
In November 2010 house prices were 0.7% lower than November 2009, by May the average cost of a UK house price was 4.2% lower than the previous year. This has slowed constantly since then to the current 2.6% which has held stable for the last two months according to the Halifax index.
Housing market bears are keen to point to London, which has seen prices rising constantly since the second half of 2009. Big rises in London and the south east are skewing the overall picture, which is one of stagnation outside these areas say the bears. The UK economic recovery is far from setting a blistering pace, and until we see some real employment growth we will continue to see the housing market stuck in this yo-yo motion, being pulled up by the affluent south, and down by the rest of the isles.