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UK house prices set another record high in June, according to figures from mortgage lender Nationwide on Thursday, although growth slowed amid tentative signs of a slowdown in the housing market.
On an annual basis, the Nationwide house price index rose by 10.7% in June, slowing from the 11.2% climb in May. The print also was just shy of the market forecast of 10.8%.
House prices grew 0.3% monthly in June, easing from 0.9% growth in May and missed the 0.5% consensus estimate.
The average price for a UK home climbed to a new record high at £271,613 in June, up from £269,914 in May, Nationwide said.
‘There are tentative signs of a slowdown, with the number of mortgages approved for house purchases falling back towards pre-pandemic levels in April and surveyors reporting some softening in new buyer enquiries. Nevertheless, the housing market has retained a surprising amount of momentum given the mounting pressure on household budgets from high inflation, which has already driven consumer confidence to a record low,’ said Nationwide economist Robert Gardner.
‘The market is expected to slow further as pressure on household finances intensifies in the coming quarters, with inflation expected to reach double digits towards the end of the year. Moreover, the Bank of England is widely expected to raise interest rates further, which will also exert a cooling impact on the market if this feeds through to mortgage rates.’
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