Commenting on today's Nationwide House Price Index, Simon Rubinsohn, RICS chief economist said: "The latest data from Nationwide shows house prices edged up by just 0.1% in June.
“This the smallest monthly gain since February 2010, when prices on this series dropped by 0.9%, and before that, from April last year.
“The flatter trend in prices which now appears to be emerging is consistent with evidence that fresh supply onto the market is beginning to outstrip new buyer enquiries. Indeed, the decision to abolish HIPs is likely to encourage an increase in new instructions to estate agents if the results of the latest RICS survey are anything to go by; according to this, the supply of property onto the market is expected to rise by around 15%.
"With Nationwide numbers suggesting house prices on average across the country are now less that 8% away from the all-time high (in London they are just over 4% away from the peak), it is no bad thing the price picture appears to be stabilising.
“The more important issue for the market is whether this is accompanied by a pick-up in transaction activity. The increase in choice for purchasers as more property comes to the market is a healthy development which, in conjunction with the stamp duty holiday for first-time buyers, could see sales volumes increase a little from current disappointing levels.
“However, with mortgage finance still being heavily rationed and consumer confidence slipping in the wake of the tough budget, it would be wrong to expect turnover to rise markedly over the balance of this year."
