House price boost in June reverses recent falls
Average UK house prices rose by 1.1% in June, according to Nationwide, pushing up annual house price growth to 3.1%.
The average UK property price is now £211,301, as this month’s rise reversed the recent fall in prices.
Despite the increase, Robert Gardner, Nationwide’s chief economist, warned that ‘monthly growth rates can be volatile’.
He explained: “The annual rate of house price growth, which gives a better sense of the underlying trend, continues to point to modest price gains.”
Alex Gosling, CEO of online estate agents HouseSimple.com, agreed: “When we look back at 2017, it will feel like the year the housing market didn’t really get going.
“Brexit and the General Election put a dampener on the traditionally buoyant Spring period. And we’re now into summer when the market tends to slow down, and what it really needs is a super-charged boost of activity to make up for several months of subdued activity.”
For the first time in eight years, price growth in Northern England (West Midlands, East Midlands, Yorkshire & Humberside, North West and North) exceeded that in Southern England (South West, Outer South East, Outer Metropolitan, London and East Anglia, said Nationwide.
Northern England saw a 3.3% year-on-year increase, while in the South prices were up 2.6%.
However, there are still significant disparities in price levels, which is noticeable when looking at prices relative to their 2007 peak. For example, prices in London are around 55% above 2007 levels, while those in the North, Yorkshire & Humberside and North West are still lower than their 2007 peaks.