31/07/2001

Nationwide statistics show house prices steadily rising

Despite worries of a slowdown in the economy, the latest figures suggest that the UK housing market remains strong.

The Nationwide Building Society’s latest house figures reveal an increase of 1.1 per cent between June and July 2001.

Over the 12 months to the end of July, prices rose by 10.9 per cent, increasing the average cost of a house to £89,962.

Although July's increase was down on June's rise of 1.9 per cent, Nationwide said: "House prices are rising at an unsustainable rate and the market must slow at some stage, although there are no visible signs of this happening yet.

"If homebuyers remain confident about the housing market and their ability to finance their mortgages, an upward revision to our forecast will become almost certain."

Alex Bannister, Nationwide's group economist, says although there had been a "modest slowdown" in the pace of growth during July, prices are still rising significantly faster than a year ago.

With interest rates low, mortgages are affordable, and demand for homes are, as a result, high.

Mr Bannister added that Nationwide is still predicting a weakening in consumer confidence, leading to lower house price inflation later in the year, though at present there is "no discernible dampening effect" on the market.

Nationwide predicts that, during 2001, around 1.4 million homes will change hands. This figure is similar to last year's, but "well down" on the level reached during the 1980s boom - when around 2 million houses were sold in a year. (AMcE)

Related Northern Ireland Business News Stories
Click here for the latest headlines.

09 September 2019
16 Jobs Created As Armagh Firm Expands Operations
Some 16 jobs will be created at an Armagh manufacturing firm as it opens a new premises to support market growth. AW Control Systems Ltd specialises in the design, manufacture, installation and commissioning of Automated Control Systems.
07 December 2005
'Strong rise’ in UK consumer confidence
Consumer confidence is on the rise in the UK ahead of Christmas, the Nationwide building society has reported. The Nationwide reported that its Consumer Confidence Index had risen by 9 points in November to 101 – the largest monthly change recorded.
04 September 2001
Nationwide revises housing prediction
The Nationwide building society has reported house prices up 0.4 per cent last month, and predicted that house prices will end the year 11 per cent higher than they began, compared with an earlier forecast of a seven per cent rise.
30 May 2002
Nationwide reveal further rise in UK house prices
The latest survey from the Nationwide Building Society has revealed that British house prices rose in May to their highest annual rate in 13 years. Overall, house prices rose by 2.1% during the month, taking their annual growth rate to 17.9% - the highest since the boom of the late 1980s.
12 September 2019
Co Down Firm Launches Recruitment Drive As Market Expands
A County Down based customer experience company is expanding its workforce with seven new recruits in order to meet increased global demand. Established in 2017, Veriteer employs 16 specialist staff globally and will add a further seven to its Holywood office to develop and service a pipeline of new customers in Europe and the USA.