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June marks seven months of sub-1% house price growth

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Average UK property prices inched up, but the housing market is subdued
June marks seven months of sub-1% house price growth

The average UK house price in June was £216,515, according to Nationwide, up 0.1% compared to May, and by 0.5% compared to June 2018.

UK annual house price growth has now remained below 1% for the seventh consecutive month in June, said the building society.

Robert Gardner, Nationwide’s chief economist, added: “Housing market trends are likely to continue to mirror developments in the broader economy. While healthy labour market conditions and low borrowing costs will provide underlying support, uncertainty is likely to continue to act as a drag on sentiment and activity, with price growth and transaction levels remaining close to current levels over the coming months.

Lucy Pendleton, founder director of independent estate agents James Pendleton, added:
“Nationally, it’s no coincidence that this is the seventh consecutive month of sub-1% annual growth on the third anniversary of the Brexit vote. Growth has been slowing steadily ever since the summer of 2016 as political upset has trimmed people’s risk appetite.

“The Bank of England has predicted second quarter economic growth to be zero and, for all the talk of a healthy labour market and low borrowing costs, weak growth in the property market still mirrors that overall. The broad brush stroke of the UK property market seems to be slipping inexorably towards zero growth too right now.”

London house prices

Prices fell in London for the eighth quarter in a row, said Nationwide, though the annual pace of decline fell to 0.7%, from 3.8% last quarter.

Prices in the capital may have fallen but, to put the falls in context, they are still only around 5% below the all-time highs of 2017 and are around 50% above their 2007 levels (by comparison, UK prices are only around 17% higher over the same period).

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