Slowing house price growth continues

30 December 2014

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.

Find 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

Add new comment