New figures show
UK annual house price softened to two per cent this month, according to Nationwide.
Prices were up 0.5 per cent during the month, after taking account of seasonal factors. London was the weakest performing region in Q2, with prices down 1.9 per cent year-on-year.
|Monthly Change*||0.5 per cent||0.2 per cent|
|Annual Change||2.0 per cent||2.4 per cent|
(not seasonally adjusted)
Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said:
“Annual house price growth fell to its slowest pace for five years in June. However, at 2 per cent this was only modestly below the 2.4 per cent recorded the previous month.
“Indeed, annual house price growth has been confined to a fairly narrow range of c2-3 per cent over the past 12 months, suggesting little change in the balance between demand and supply in the market over that period.
“There are few signs of an imminent change. Surveyors continue to report subdued levels of new buyer enquiries, while the supply of properties on the market remains more of a trickle than a torrent.
“Looking further ahead, much will depend on how broader economic conditions evolve, especially in the labour market, but also with respect to interest rates.
“Subdued economic activity and ongoing pressure on household budgets is likely to continue to exert a modest drag on housing market activity and house price growth this year, though borrowing costs are likely to remain low.
“Overall, we continue to expect house prices to rise by around 1 per cent over the course of 2018.