What's happening to house prices?

Of the seven major house price indices, four claim house prices are on the up and three say prices are dropping. It's all rather confusing. So what's really happening to house prices?

Our national obsession with property prices has resulted in umpteen house price indices springing up. Much of the time all of them point in broadly the same direction. At the moment they don't. Of the seven major ones, four claim house prices are on the up and three say prices are dropping. It's all rather confusing. So what's really happening to prices?

The latest index update was produced by Nationwide. It reported that prices dropped by 0.9% in August. That may seem like a small dip, but it adds to signs that the recovery in house prices has stalled. Nationwide's index is based on the value of properties that people applying to them for mortgages want to buy. Supporting this index is the Rightmove House Price Index, which reported a dip of 1.7% in sellers' asking prices in August.

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Ruth Jackson-Kirby

Ruth Jackson-Kirby is a freelance personal finance journalist with 17 years’ experience, writing about everything from savings accounts and credit cards to pensions, property and pet insurance.

Ruth started her career at MoneyWeek after graduating with an MA from the University of St Andrews, and she continues to contribute regular articles to our personal finance section. After leaving MoneyWeek she went on to become deputy editor of Moneywise before becoming a freelance journalist.

Ruth writes regularly for national publications including The Sunday Times, The Times, The Mail on Sunday and Good Housekeeping, among many other titles both online and offline.