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What’s happening to house prices?

Christina Hoghton
Written By:
Christina Hoghton
Posted:
Updated:
31/07/2019

The latest house price index shows a rise in property prices, but only just

UK house price growth remained subdued in July, according to Nationwide, rising by just 0.3% over the previous month.

Annual house price growth also slowed slightly to 0.3%, taking the price of an average property to £217,663.

This is the eighth month in a row that annual house price growth remained below 1% and the lender noted ‘mixed signals’ from the property market in recent months.

Robert Gardner, Nationwide’s chief economist, said: “Surveyors report that new buyer enquiries have increased a little, though key consumer confidence indicators remain subdued. Data on the number of property transactions points to a slowdown in activity, though the number of mortgages approved for house purchase has remained broadly stable.

“Housing market trends will remain heavily dependent on developments in the broader economy. In the near term, healthy labour market conditions and low borrowing costs will provide underlying support, though uncertainty is likely to continue to exert a drag on sentiment and activity.”

Brexit uncertainty

Michael Biemann, CEO of digital property lender, Selina Finance, added: “It’s hard to see the narrative changing between now and Halloween. Subdued is about as exciting as things will get.

“If we leave the EU without a deal, transactions could slow up further and prices come under pressure in the short term, but that’s understandable and does not spell the end for UK bricks and mortar.

“In the long term, the UK property market will come good, but for now we are entering the biggest unknown for generations and people should buckle up for Brexit accordingly.”