House prices are slowing down according to the recent data released from Nationwide.  According to their latest report, on both the monthly and quarterly comparison there was a slowing of the growth on house prices.  The growth for March was 0.4%.  The annual comparison did show a growth of 9.5%.

There was a widening gap in the level of the average house price in London compared with the rest of the UK.  In London the average house price grew to twice the level elsewhere at £362,699.  Overall in the UK the average house price for March was £180,264.  This is the highest the average price has been since January 2008.  While it is the highest since 2008 it is still the lower than the peak level of 2007.

The March increase marked the 15^th consecutive month of increases in house prices.

The slowdown in house prices rising should help to slightly settle the critics that have called for a halt to the government’s Help to Buy scheme.  Many had felt the government assistance to first time buyers in getting into new construction homes with low deposits and backing lender’s mortgage loans to buyers had pushed demand so high that house prices were rising too fast. 

Complaints were less likely from homeowners due to the fact that they have realized an increase in their equity levels.  Remortgage demand has risen along with house prices.  The demand for remortgages is being credited for the increases in equity, growing consumer confidence and the low interest rates currently offered on new remortgage deals from lenders.