New figures show that the average price of a home has risen to record levels.
Figures from the Nationwide Building Society released today, show that the average home in the UK is now worth £195,621; the highest level ever recorded by the building society.
Last month the UK’s largest mortgage lender, the Halifax, reported that the average property price in the UK was now £200,280.
The Nationwide figures also showed that property prices rose by 0.4% in July following a fall of 0.2% in June.
However, the figures also show that property prices have risen by 3.5% over the past 12 months,their slowest rate for two years, following a period of double digit growth.
Commenting on the figures, Robert Gardener, Chief Economist at the Nationwide, said: “This would bode well for a sustainable increase in housing market activity, though whether this will be maintained will depend on whether building activity can keep pace with increasing demand.”
Gardener continued: “The outlook on the demand side remains encouraging. Employment growth has remained relatively robust in recent quarters, and, after a prolonged period of subdued growth, wage growth is also edging up. With consumer confidence buoyant and mortgage rates still close to all-time lows, demand for housing is likely to firm up in the quarters ahead.”
However, some experts were quick to point out that future increases in the value of property could be dampened by a predicted rise in interest rates. Whilst the latest statistics showed an increase in the number of unemployed people, which if were to continue, could have a negative knock on effect on the housing market.