The property market is stabilising according to the Nationwide building society, which is basing its claim on the fact that house prices rose for the second month running in June.
The Nationwide reported that house prices rose 0.9 percent this month making the annual rate of decline 9.3 percent, down from 11.3 percent in May. This was the smallest fall since July 2008.
Property prices in the three months to June were 0.9 percent higher on the previous three months and the average house price now stands at £156,442 pounds.
Consumers also appear to be more confident about their future finances following a survey by GfK/NOP leading to predictions that Britain may be one of the first major economies to pull out of recession.
But the concludes that caution is still needed as the apparent property price stabilisation comes when there has been very little purchase activity coupled with a fall in the amount of property for sale.
• Buy to Let property investors looking to get a toe hold in the London Market will be interested in the news that around 750 new homes, plus commercial and leisure facilities, are to be built next to the Thames Barrier in Newham.
The Mayor of London, Boris Johnson, has approved the plans for ‘Barrier Park East’ which are expected to transform this former industrial site into a vibrant east London neighbourhood, bringing new life to a long neglected corner of the capital.
Much of Barrier Park East has been designed for families and includes plenty of open and green space and, in particular, play space for the children.
Johnson said: “This is yet another major development that will support the capital’s economy with new jobs and business opportunities in the building sector.
“It is also going to create a brand new community on an important stretch of the Thames. I am confident that as more of this part of the capital is developed, and as the Docklands Light Railway is extended under the river to Woolwich, the transformation and future regeneration of the east and south east of London is assured.
