Nationwide survey shows house price decline

The Nationwide property survey has today revealed that UK property prices fell by 0.9% between July and August which appears to show the rate of decline is speeding up from 0.5% in July. While the year on year increase in UK property prices still stands at 3.9% this is down sharply from the 6.6% in July and the even greater 8.7% in June. All in all, there is no doubt that the UK property sector is at the very best starting to cool and at the worst on the verge of a downward spiral.

While it is dangerous to place too much emphasis on month by month figures in relation to any investment or any indicator, it is the significant fall in the year on year increase in UK property prices which is causing great concern. This comes at a time when UK consumers are looking to repay their debt rather than take out further mortgages and loans - which are vital elements for the eventual recovery in the UK economy.

Only a few weeks ago a number of property surveys appeared to be giving very different signals although slowly but surely they all appear to be coming into line with the indication there are some choppy times ahead for the UK property sector.