Annual house price inflation falls by 2% as Nationwide reports a cooling housing market in July

House price inflation in the UK continued to ease off in July, according to figures from the Nationwide building society.

Its latest monthly survey shows that prices fell by 0.5% this month, taking the annual rate of house price inflation down from 8.7% to 6.6%. The Nationwide said price rises were easing off because more homes were being put up for sale.

The price of the average home is now £169,347, almost the same as it was in July 2008.

However, the society’s chief economist, Martin Gahbauer, warned: “A combination of restrictive credit conditions and uncertainty about the future economic outlook continues to limit the pool of buyers to those with relatively large financial resources.”

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