UK house prices decrease in third quarter
At -0.5%, the quarterly pace of decline was the fastest for just over five years, which contrasted with the 1.6% rise in house prices during Q2 2016.
In cash terms, the standardised UK property price dropped to £214,140 in Q3 2016, from £215,168 in the previous quarter. A reversal in the index through Q3 201
represented the first quarterly fall in UK house prices since Q3 2012. However, the pace of decline was only marginal and much slower than the price reductions seen through the global financial crisis (which peaked at -5.6% in Q3 2008).
UK house prices meanwhile remain higher than at the same time in 2015. Nonetheless, the year-onyear rate of inflation slowed to +5.7% in Q3, from +8.3% in Q2, to signal a considerable loss of momentum from the post-crisis peak seen at the start of 2016 (+10.1%).
The standardised UK property price was £202,548 during the third quarter of 2015, meaning that the price of the average home has risen by around £11,500 over the past year. ■