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UK house price growth rebounds in June, says Nationwide

House prices rose 1.1 per cent in June alone after falling 0.2 per cent in May

Andy Bruce
Wednesday 28 June 2017 17:51 BST
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House prices in London increased at the slowest annual pace since 2012, rising 1.2 per cent year-on-year in June
House prices in London increased at the slowest annual pace since 2012, rising 1.2 per cent year-on-year in June

British house prices rebounded in June after falling for three months, mortgage lender Nationwide said on Wednesday, bucking other signs of weakness in the housing market.

House prices rose 1.1 per cent in June alone after falling 0.2 per cent in May, Nationwide said.

Nationwide warned that monthly growth rates can be volatile and said it was unclear if the latest increase reflected improved demand. It expects prices to rise by about 2 percent in 2017 overall.

Other analysts also have a subdued outlook.

“The fundamentals for house buyers are likely to deteriorate further over the coming months with consumers' purchasing power squeezed even more by a damaging combination of higher inflation and muted earnings growth,” said Howard Archer, chief economic advisor to the EY ITEM Club consultancy.

House prices in London during the second quarter fell by 2.0 percent compared with the first three months of the year, the sharpest drop since the end of 2010.

In annual terms, London house prices increased 1.2 percent over the period, the weakest growth on this measure since 2012.

“For London's house prices to be growing at the second slowest rate in the country would have been unthinkable for much of the past decade,” Jonathan Hopper, managing director of Garrington Property Finders.

Demand in London has stuttered since taxes were increased on properties worth more than 1 million pounds and on second homes and buy-to-let rental properties, compounded by the Brexit vote putting off some foreign investors.

House prices in London increased at the slowest annual pace since 2012, rising 1.2 per cent year-on-year in June, Nationwide said.

Reuters

 

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