Slowing house price growth continues

House arrow down

More evidence that this year's house price boom is winding down has emerged, with data suggesting December produced the slowest year-on-year growth for all of 2014.

According to the Nationwide Housing Index, houses in the UK were 7.2% more expensive in December 2014 than they were twelve months prior. This is the slowest rate of year-on-year change since November 2013.

Quarterly growth figures also back up the theory that house price growth is on a cooling trend, with Nationwide reporting slowing quarter-on-quarter growth in every region of the UK.

Still, London prices continue to skyrocket with prices in the three months to December reaching a point 17.8% higher than that period in the previous year (when Nationwide reported annual growth for the quarter of 21%).

As of the final quarter of 2014, the average house price in the UK was £189,002 (monthly calculations differ slightly because they use a different set of data). The London average was £406,730.

Get help finding the best mortgage for you

Seasonal effects

Robert Gardner, chief economist at Nationwide, says: "All regions except the North of England saw a slowing in annual price growth in the final quarter of 2014, although all saw price growth over the year overall.

"Across the UK as a whole, prices rose by 1.1% over the quarter, after allowing for seasonal effects."

Earlier speculation of a housing market cool-off began in October when Nationwide reported average house price growth had slowed for the second month running.

This article was written for our sister website Money Observer