Insurance News Archive

Property insurance: House prices rise again in August

Written by Dan Winters

House prices have risen again in August, with the year-on-year decline slowing, according to the latest Nationwide figures which could interest those with property insurance.

The bank said that the average price for a home currently stands at £160,224, which represents a 1.6 per cent increase compared to last month.

According to the figures, the year-on-year decline in values also slowed from -6.2 per cent to -2.7 per cent between July and August, which may interest those with property insurance.

Martin Gahbauer, chief economist at Nationwide, said that the low level of interest rates could be one of the reasons house prices are not undergoing the sharp falls seen in 2008.

However, when rates eventually increase again, this will most likely "dampen" recent buyer interest, he added.

"The latest statistics from Nationwide appear to confirm that the housing market has finally bottomed out," said Gary Smith, president of the National Association of Estate Agents.

27 Aug 2009