House price growth skids to five-year low
House prices are rising at their slowest rate since 2013, as values in London continue to fall, according to Nationwide data.
Values increased by 2% annually in June, the slowest rise in five years, according to the lender’s data.
Month-on-month prices increased by 0.5% to reach an average £215,444.
Over the three months to the end of June, London has been the worst performing region with prices down 1.9% annually.
However, prices in the capital are still the most expensive in the country at a typical £468,845.
The regional view
The East Midlands came in as the strongest growth region in the UK, with prices up 4.4% year-on-year in the second quarter to an average £181,549.
Regionally, values are lowest in the North at £127,266.
Robert Gardner, Nationwide’s chief economist, said: “Annual house price growth has been confined to a fairly narrow range of around 2-3% 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.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, added: “On the one hand, the squeeze on incomes and unrealistic asking prices is reducing activity and confidence to move, particularly in price-sensitive areas such as London.
“On the other hand, the market continues to be supported by low interest rates and overall supply shortages, although we have found recently that listings and viewings are on the rise.
“This will translate into more sales if buyers and sellers recognise the new market realities.”