Figures released by the Nationwide Building Society today reveal that house prices have fallen for the second month in a row, the first time this has happened since February 2009.
In August prices fell by 0.9%, following a smaller, 0.5% decline in July. The average UK house price is now around £166,500.
Prices fell 0.9% last month, following a 0.5% decline in July, Nationwide said, adding that it was the first time that prices had fallen for two consecutive months since February 2009.
The average house price now stands at just over £166,500. Nationwide said prices had “essentially stagnated over the summer,” and explained that the increase in house sellers has given house buyers greater bargaining powers. However, Martin Gahbauer, chief economist for the building society, warned: “Given that the price increases of the last year had gotten ahead of the recovery in the wider economy, the current correction is not an unhealthy development.”
Richard Hatch of Carter Jonas property consultancy was rather more upbeat in his interpretation of the figures, saying: “We do not expect two months of consecutive declines to be the beginning of a sharper downward price trend. The market is simply readjusting after getting ahead of itself. The market is stabilising, not collapsing.”