UK house price growth remained subdued in June, with prices increasing by just 0.5 per cent when compared to June 2018, taking the average property price to £216,515, according to the latest Nationwide House Price Index published today.

In his opening comments, Nationwide chief economist Robert Gardner highlighted that UK annual house price growth has remained at below 1 per cent for the seventh consecutive month, with survey data suggesting that new buyer enquiries and consumer confidence has also remained low.

Despite this, Gardner noted that indicators of housing market activity, such as the number of mortgages approved for house purchase, have remained “broadly stable”.

“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,” he said.

This growth level on a monthly basis was almost flat as prices inflated by just 0.1 per cent on May 2019, after taking account of seasonal factors. However, this is a slight improvement on May’s recording, when house prices dropped 0.2 per cent in the month.

Looking at Q2 2019, Northern Ireland remained the strongest performing home nation, with annual price growth rising to 5.2 per cent, from 3.3 per cent in the previous quarter. Wales also saw a significant uptick, with annual house price growth increasing to 4.2 per cent, from 0.9 per cent in Q1. Price growth in Scotland was more subdued, at just 0.4 per cent year-on-year.

Nevertheless, England remained the weakest performing home nation, with house prices essentially flat when compared to the second quarter of 2018. This figure was primarily driven by house price falls in London and the South East, with property prices in London falling for the eighth consecutive quarter, despite the annual pace of decline moderating to 0.7 per cent, from 3.8 per cent in Q1.

The Outer Metropolitan was the weakest performing region in the three months leading to June, closely followed by the Outer South East, with annual price declines of 1.8 per cent and 1.6 per cent respectively.

Commenting on the index, Trussle mortgage expert Dilpreet Bhagrath said: “Despite the slight increase of 0.1% in house prices from last month, it’s clear that the overall slowdown since mid-2016 continues to keep growth subdued.”

“The subdued activity in the housing market could be a reflection of the current economic and political uncertainty in the UK. But, the slowdown in house prices does provide some hope for those looking to buy, especially for first-time buyers who are looking to step a foot on the property ladder.”

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