The average UK house price is similar to two years ago and now stands at £162,262, according to data from Nationwide.
Over 2012, the price of a typical UK home fell by 1 per cent reversing the 1.1 per cent price gain recorded in 2011.
On a monthly basis average house prices fell by 0.1 per cent in December but on a quarterly basis rose by 0.5 per cent in the final three months of 2012.
Robert Gardner, Nationwide’s chief economist, said: “Given that the UK economy was in recession for much of 2012 a 1 per cent decline in house prices may be seen as a relatively resilient performance.
“However, the fact that prices declined even though employment rose strongly, suggests that conditions remain fragile, especially since other signs of housing market activity, such as the number of mortgage approvals, remained subdued, well below their long run averages.
“The outlook remains uncertain. Continued low interest rates and policy measures such as the Funding for Lending Scheme should provide some support.
“But, with the economic recovery expected to remain fairly weak, the housing market is likely to be characterised by low levels of activity again in 2013, with prices remaining flat or modestly lower over the course of the year.
On a regional basis, 11 out of 13 UK regions saw annual price falls during 2012. London was the best performing region while Northern Ireland continued to see the largest price falls.
England continued to outperform the other home nations, with prices down 0.4 per cent in annual terms, but the north/south divide in property prices continued to widen.
Loading ...