House prices rise three per cent in 2010

Commenting on the figures Martin Gahbauer, Nationwide's chief economist, said: "The month of June presented a picture of broad stability for the housing market. The price of a typical UK property rose by a seasonally adjusted 0.1 per cent month-on-month, following a 0.5 per cent increase in May. The smoother three month on three month rate of change rose marginally from 1.7 per cent to 1.8 per cent.
"By contrast, the annual rate of house price inflation dropped for the second consecutive month from 9.8 per cent to 8.7 per cent, reflective of the fact that house prices were increasing at a faster pace this time last year. Barring a significant pick-up in house prices over the next few months, the annual rate of inflation should continue to drift lower, in light of the very strong price increases recorded during the summer of 2009. Over the first half of 2010, UK house prices have risen by a cumulative 3.0 per cent.
"Recent indicators point to an increase in the supply of property coming to the market for sale, perhaps in response to the abolition of HIPs in the opening days of the new coalition government. With the level of demand remaining broadly stable, this would in part help to explain the recent slowdown observed in the rate of house price inflation."