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| Version 1 | Version 2 |
|---|---|
| House price growth 'bounces back' | House price growth 'bounces back' |
| (about 1 hour later) | |
| UK house price inflation "bounced back" in June with prices rising by 1.1%, according to the latest survey from the Nationwide building society. | UK house price inflation "bounced back" in June with prices rising by 1.1%, according to the latest survey from the Nationwide building society. |
| The stronger-than-expected increase lifted the annual rate of growth to 11.1% from 10.3% in May. | The stronger-than-expected increase lifted the annual rate of growth to 11.1% from 10.3% in May. |
| Nationwide said prices were rising more than twice as fast as last year, with the average house price now £184,070. | Nationwide said prices were rising more than twice as fast as last year, with the average house price now £184,070. |
| However, it said that it thought the rate of growth would slow in the second half of the year. | However, it said that it thought the rate of growth would slow in the second half of the year. |
| As a result, Nationwide said it was sticking by its forecast of 5-8% price growth for 2007. | As a result, Nationwide said it was sticking by its forecast of 5-8% price growth for 2007. |
| 'Softening' | 'Softening' |
| Estate agents are continuing to show a fall in the number of new buyer enquiries and house builders are also registering falls in the numbers of site visitor Fionnuala Earley, Nationwide | Estate agents are continuing to show a fall in the number of new buyer enquiries and house builders are also registering falls in the numbers of site visitor Fionnuala Earley, Nationwide |
| The strength of the UK housing market was underlined by the fact that prices in the past three months rose 2.2% compared with the previous three month period, up from May's comparable figure of 1.9%. | |
| Nationwide's survey findings run contrary to recent trends which have seen house price inflation beginning to plateau. | |
| But Fionnuala Earley, Nationwide chief economist, said that despite June's uptick in inflation, the housing market was showing signs of "softening". | But Fionnuala Earley, Nationwide chief economist, said that despite June's uptick in inflation, the housing market was showing signs of "softening". |
| "Estate agents are continuing to show a fall in the number of new buyer enquiries and house builders are also registering falls in the numbers of site visitors," Ms Earley said. | "Estate agents are continuing to show a fall in the number of new buyer enquiries and house builders are also registering falls in the numbers of site visitors," Ms Earley said. |
| She says the key reason is the steady rise in UK interest rates, which have been raised four times since last August, going up from 4.5% to 5.5%. | She says the key reason is the steady rise in UK interest rates, which have been raised four times since last August, going up from 4.5% to 5.5%. |
| The Bank of England's Monetary Policy Committee will meet next week to decide whether to raise UK interest rates again. | |
| Many experts are predicting a further rate rise in July or August, which may further squeeze homeowners' finances. | |
| Ms Earley said the continued vigour shown by the housing market would "add to the rate rise camp's argument." | Ms Earley said the continued vigour shown by the housing market would "add to the rate rise camp's argument." |