The Model Making Company

Quarterly rate of change turns positive for first time in 18 months and annual decline slips into single figures
House prices rose 0.9% in June, according to Nationwide. The building society also reported the first positive three-month rate of change since December 2007. However, prices are still 9.3% lower than a year ago, with the average house now worth £156,442.
Nationwide chief economist Martin Gahbauer said that it was the first time for months that the year-on-year fall had been in single digits.
He added that economists might have to revise forecasts: “If the pattern of price movements seen in the first half of the year is repeated over the second half, then prices could show only a small single-digit fall for 2009 as a whole.”
This would represent a stark shift from trends seen at the turn of the year, when most indicators were pointing to a repeat of the large declines seen in 2008.

By Michael Willoughby

The number of planned new homes has hit its highest level for nearly a year, new figures show
Over 4,500 private new homes were registered with warranty provider the National House-Building Council (NHBC) in May 2009, the highest level since July 2008 when they reached 5,305.
Total registrations of both private and public sector homes also hit their highest level since September 2008.

Firms respond to gradual increase in demand, but long period of convalescence is in store
Most major housebuilders are now starting to open up new sites, as prices stabilise and the builders run through their unsold units, according to research conducted by Building.

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