Money News
8th August 2008
House price growth hits 12-year low
UK house price growth hit its lowest level for over 12 years during July, it has been revealed.
According to new figures from the Financial Times (FT), the average home fell to 0.5 per cent over the course of the month.
As a result, the annual rate of house price inflation fell to 0.3 per cent - the lowest figure since February 2006.
This brought the average house price to £226,292.
Peter Williams, chairman of Acadametrics which carried out the research on behalf of the FT, said: "While our index shows house prices remain marginally higher than they were last year this is the lowest annual growth rate recorded since February 1996 and it is the eleventh month in succession in which the annual rate of increase has fallen in nominal terms.
"Clearly in real terms - i.e. excluding the impact of inflation - the FT index is now negative."
The FT's figures are out of step with other house price indices, with both Halifax and Nationwide reporting price declines of 1.7 per cent during July.
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