Despite the recent slowdown in house price growth, the average price of a home has risen by £10,500 in the last year.
According to Nationwide, a new record average home price of £215,444 was recorded for June following a rise of 2% in the year preceding that month.
This year however, prices are expected to rise by only 1% and the London market is expected to continue to disappoint growth wise.
There are some bright spots in the UK, with the Midlands experiencing rises of 4% annually, compared with 1.9% for London.
Robert Gardner of Nationwide comments:
"There are few signs of an imminent change. Surveyors continue to report subdued levels of new buyer enquiries, while the supply of properties on the market remains more of a trickle than a torrent"
House prices are currently at near record highs when compared with average wages.
The current state of the market means that sellers may need to be more conservative with the level of value they seek.
Jeremy Leaf, estate agent says:
"...the market continues to be supported by low interest rates and overall supply shortages, although we have found recently that listings and viewings are on the rise. This will translate into more sales if buyers and sellers recognise the new market realities."
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House prices are rising at the slowest pace for five years - but homes still cost £10,500 MORE than a year ago