Here at Clear Property Investment we’ve always got our finger on the pulse of housing trends/prices and we’re happy to report that this month more property is coming onto the market.

The new government’s abolition of Hips (Home Information Packs) no doubt had something to do with this rise in property. But so too has the rise in house prices.

Admittedly it’s not a big rise – 0.1 per cent but it means the average property in the UK is now £170,000.

Martin Gahbauer, chief economist of the Nationwide Building Society reports that house prices have risen by three per cent since January 2010.

He said: “The level of demand (for properties) has remained broadly stable which would explain why there’s been a slowdown in the rate of house price inflation.”

House price inflation is down to 8.7 per cent and it’s expected to keep falling.

Mr Gahbauer has dismissed the notion that the change in the rate of capital gains tax, up to 28 per cent last month, has had a big influence on the amount of properties entering the market.

Analysts say the most promising area of the market is the ‘top end’ where prices are still rising, along with demand.

Recently the biggest price growth has been in the South West of England at 3 per cent (with London the biggest rise overall) while in Ireland the average cost of a home is dropping by as much as 5.7 per cent.

Scotland’s annual house price growth at 7.2 per cent (up from 5.6 per cent) means it’s going the right way but remains under the UK average.

Mr Gahbauer added: “Despite a better performance this quarter, the North remained the weakest region on an annual basis, with prices up 6.0 per cent year-on-year. The Outer Metropolitan region retained second place behind London, with annual growth of 12.9 per cent, following a 2.3 per cent increase over the quarter.”

For further information on property investment, inflation and the property market in general, please contact our staff at any of our four offices. They’ll be only to happy to offer advice or clarification.

View other news from July 2010