Property summer officially cool

OFFICIAL figures today confirmed the UK property market cooled during the summer months.

Annual house price inflation fell to 13.6% in August from 14.3% in July, according to a study from the Office of the Deputy Prime Minister (ODPM). First-time buyers only made up 28% of buyers compared with a long-term average of 47%.

A batch of recent surveys have painted a picture of easing demand. Nationwide building society said prices rose 0.2% in September and 0.1% in August.

However, the ODPM figures also revealed a sharp 1.3% rise in prices month-on-month, from £177,474 to £179,486. Officials warned the comparison is not seasonally adjusted but the figures come days after Halifax warned prices leapt 1.4% in September, following a 0.6% fall in August.

The OPDM said London, which tends to lead house price trends, saw one of the most marked slowdowns, with annual prices inflation at 6.5% compared with 8.4% in July.

The annual increase in prices in England fell from 13.4% to 12.9%, and inflation in Scotland fell from 22.3% to 20.2%. The Welsh market remained robust with values rising 27.6% compared with 30.4% before. The trend in Northern Ireland remained erratic with prices up 10.9% compared with 14.4% before.

House price inflation fell across all English regions except for the East and South East. The highest rates remained in the North East (25.6%), Yorkshire and the Humber (25.1%) and the North West (22.7%).

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