House price growth eases in second quarter

The pace of price growth in the UK property market eased in the second quarter of this year, but all regions still saw prices go up, according to the latest market index.

Nationwide revealed that the quarterly rate of inflation was 2.1 per cent between April and June this year, compared to 2.3 per cent in the first quarter of 2007.

On an annual basis, prices increased by 10.2 per cent in the second quarter, from 9.5 per cent in the first three months of the year. These inflation levels brought the average price of a home in the UK to £181,810 in quarter two, from £175,554 in the previous period.

London continues to be the most expensive region to invest in property, while Northern Ireland saw the strongest price growth last quarter.

Fionnuala Earley, Nationwide's chief economist, said: "Prices increased by at least five per cent in every region of the UK over the past 12 months, with five out of 13 regions recording double-digit growth. Each region also saw prices rise from the previous quarter on a seasonally adjusted basis.

"As per the first quarter of 2007, Northern Ireland and London led the market during April-June, with annual price growth reaching 54 per cent and 15.7 per cent respectively."

The average price of a property in London is now £292,409, compared to £199,178 in England as a whole.

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