The latest house price index from Nationwide reported typical values rose 0.1 per cent in September to £166,757.
But the increase was not enough to stem the drop in annual inflation, which slid from 3.9 per cent in August to 3.1 per cent in September.
Martin Gahbauer, chief economist at Nationwide, said: “Buyers appear to have a slightly better hand than sellers at the moment, as the market continues to absorb the recent increase in property for sale.”
Home buyers faced a mini property boom earlier this year amid a shortage of supply of suitable properties. However, supply is now greater than the demand from buyers in many areas.
Housing experts warn prices are likely to fall further amid the economic gloom.
Nick Hopkinson, director at Property Portfolio Rescue, said: ““It seems almost inevitable that house prices will fall over the next few months.”
David Smith, of estate agents Carter Jonas, said: “We expect the mild turbulence of the past few months to continue for the rest of the year.
“Until there is more clarity around the longer-term direction of the economy, and the depth of the public sector cuts, the market will remain unpredictable.”
And Richard Sexton, business development director at e.surv, said: “The market is still very delicate at the moment. Prices certainly aren’t going to skyrocket while people are mulling over the potential impact of the austerity measures the Chancellor is planning.”
Source: House price declines 'inevitable' - Telegraph
But the increase was not enough to stem the drop in annual inflation, which slid from 3.9 per cent in August to 3.1 per cent in September.
Martin Gahbauer, chief economist at Nationwide, said: “Buyers appear to have a slightly better hand than sellers at the moment, as the market continues to absorb the recent increase in property for sale.”
Home buyers faced a mini property boom earlier this year amid a shortage of supply of suitable properties. However, supply is now greater than the demand from buyers in many areas.
Housing experts warn prices are likely to fall further amid the economic gloom.
Nick Hopkinson, director at Property Portfolio Rescue, said: ““It seems almost inevitable that house prices will fall over the next few months.”
David Smith, of estate agents Carter Jonas, said: “We expect the mild turbulence of the past few months to continue for the rest of the year.
“Until there is more clarity around the longer-term direction of the economy, and the depth of the public sector cuts, the market will remain unpredictable.”
And Richard Sexton, business development director at e.surv, said: “The market is still very delicate at the moment. Prices certainly aren’t going to skyrocket while people are mulling over the potential impact of the austerity measures the Chancellor is planning.”
Source: House price declines 'inevitable' - Telegraph
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