House Prices Fall in June

House prices in the UK have fallen in the month of June, which is now the second such drop in the last four months, the findings have been released by the Nationwide Building Society, thus seeing the predictions that this was going to happen, as the countries £3 trillion housing market, seems to be going through a period of slowing down.

After a small rise of 0.3% in the values of the UK house prices, the down turn for June only saw a fall of 0.2%, Nationwide have said and though they still advanced by 4.1% for the year, it was still recorded as the slowest rise, for 9 years.

Fionnuala Earley, group economist for Nationwide, said, “The trend over the last three months shows an almost level price rise this last year”

Many factors are being looked upon as the main reasons that the housing property market has slowed, compared to the level of rises that was becoming common practice in the last few years.

The reasons are being put down to the fact that interest rates are now sitting at a 3and a half year high, soaring oil prices, which have seen the cost of a barrel of crude reaching $60 and a mini recession on the job front, which has led to a tightening of belts by the public, as they try to reduce their debts in the case of any eventualities.

All this has stalled the housing market, which had seen a massive up turn over the 5-year period till now, with house prices more than doubling in that time. All this extra wealth that the public feel that, due to the extra equity that now have with the value of their homes, it meant that it gave the people more confidence in their spending and spend they did as it helped a UK growth for 51 consecutive quarters.

With the average house price in the month of June being£157,791, which is up £519 than the average house values in May, which were priced at £157,272.