House price inflation decreases

The annual rate of house price inflation has decreased from 4.8 per cent to 4.2 per cent, according to Nationwide.

With the average house price at £180,473, the report from the bank shows a drop from the December figure of £182,080.

Martin Gahbauer, Nationwide senior economist, said: "UK house prices were barely changed in January, recording a modest fall of 0.1 per cent over the month on a seasonally adjusted basis. Although house prices have now fallen for three consecutive months, the price of a typical property is still 4.2 per cent higher than a year ago."

He added that this figure is down from 4.8 per cent in December and represents the "lowest rate of annual house price inflation since December 2005".

The report shows that housing market conditions have loosened further but there are now signs that the demand for housing in the UK may have bottomed out.

Nationwide Building Society is the UK''s second largest savings provider.

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