Growth of UK House Prices Slows in June
In a startling turnaround, the UK housing market experienced a decrease in the growth of average house prices in June, according to Nationwide Building Society. Prices slowed by more than 0.1% during the month, which is far from the projected 0.2% estimated by economists close to the housing market. In comparison, at this time last year prices were surging forward by almost 12%. The latest data brings the average house price in the UK to slightly more than £195,000.
According to Robert Gardner of Nationwide, this is no surprise at all. He commented on the latest data released, saying: “This maintains the gradual downward trend that has been in evidence since mid-2014.”
He added: “Price growth continues to outpace earnings, but the gap is closing, helped by a pick-up in annual wage growth.”
Gardner continued to express the impact the London market has on the rest of the UK, saying: “In quarter-on-quarter terms, London has continued to see price growth at or above the rate in the UK overall over the past three quarters, while the annual rate of price growth in the capital remains the second highest in the country.”
Even though a marginal dip has occurred, Howard Archer of IHS Global Insight still believes house prices will rise as the year progresses.
Archer commented on the latest news, saying: “Consequently, we maintain the view that house prices will rise by 6 per cent over 2015. We currently see house prices rising by around 5 per cent in 2016.”