House price inflation at lowest level for three years

Annual house price inflation eased to its lowest level for almost three years in December, according to the Nationwide house price survey.

08:54 30 December 2004

Annual house price inflation eased to its lowest level for almost three years in December, according to the Nationwide house price survey.

House prices fell 0.2 per cent in December, taking the rate of annual house price inflation down to 12.7 per cent from 15.0 per cent in November.

House price inflation reached 20 per cent in July 2004, but has fallen in each month since.

Alex Bannister, Nationwide's Group Economist, said that while 2004 was the fourth consecutive year of double-digit house prices inflation, it was a year of two very distinct parts.

"Over the first seven months of the year prices rose 11.4 per cent but since July prices have increased by only 1.2 per cent. December's fall in the price of the average house was the second monthly fall in the last three months. Despite this, house prices are up 0.7 per cent (2.8 per cent on an annualised basis), compared to three months ago."