Slowest house price growth in 18 months sparks slump fears

Bad news for those already on the property ladder but good for everyone else…

House prices in the UK fell last month after five consecutive months of rises.

The cost of an average home on the market fell 0.1% from £188,446 in January to £187,964 in February.

In fact, year-on-year, growth in the property market was the slowest it has been since September 2013, at 5.3%.

Nationwide, which carried out the research, said the long-term trend of fewer young people being able to get on the property ladder was partly responsible for the decline. This was despite an improved economy and low interest rates.

“Mortgage rates remain close to all-time lows and consumer confidence remains buoyant thanks to a further steady improvement in labour market conditions,” said Nationwide’s chief economist Robert Gardner.

The proportion of young people (25-34 year-olds) who own property has fallen a staggering amount, from 59% in 2004 to just 36% in 2014.

NOW READ:

Gutting: This is how the cost of renting in London compares to the UK

TalkTalk customers are at risk of fraud after major data theft

Lloyds finally pays out dividends on £1.7bn profits