According to the latest survey results the house price inflation is continuing to slow. The prices in England and Wales in the year to December rose 7%, down from 7.2% in November and the fourth month in a row that the annual rate has fallen. The annual rate of growth slowed to 6.8%, although the survey found that the UK house prices rose 0.3% in January of this year.
The economic background has continued to improve, so the reasons for the slowdown in housing market “remain unclear”, the Nationwide said. Property commentator Henry Pryor expects the house price slowdown to last at least until after this years general election.
Simon Morris also shares the view that the cooling of the property market may be explained partly by the government initiatives such as the Funding for Lending Scheme (FLS) and Help to Buy.
Full article – http://www.bbc.co.uk/news/business-31034821
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