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UK house price growth slows slightly in June – Nationwide
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LONDON (Reuters) – British house prices rose at a slower pace in June than in May as higher inflation squeezed household budgets, but the average price of a home still hit a new record, monthly figures from mortgage lender Nationwide showed on Thursday.
LONDON (Reuters) – British house prices rose at a slower pace in June than in May as higher inflation squeezed household budgets, but the average price of a home still hit a new record, monthly figures from mortgage lender Nationwide showed on Thursday.
House prices in June were 0.3% higher than in May, when they rose 0.9%. Compared with June 2021, prices were 10.7% higher, a slowdown from annual growth of 11.2% in May. Both monthly and annual increases were slightly less than the median expectation in a Reuters poll of economists.
“There are tentative signs of a slowdown,” Nationwide’s chief economist, Robert Gardner, said.
“Nevertheless, the housing market has retained a surprising amount of momentum given the mounting pressure on household budgets from high inflation,” he added.
Consumer price inflation hit a 40-year high of 9.1% in May, and the BoE has warned the economy is likely to come close to recession later this year.
Financial markets also expect the central bank to keep raising interest rates over the coming months, and see them reaching 2.75% by December, up sharply from 1.25% now and just 0.1% at the start of December 2021.
The average price of a home rose to a record 271,613 pounds ($330,064), Nationwide said, with the biggest increase in southwest England, where prices rose 14.7% on the year. London saw the smallest rise, with annual price growth slowing to 6.0% from 7.4% in the previous quarter.
Overall, house prices have risen by more than 20% since the start of the COVID-19 pandemic, Nationwide’s figures showed.
($1 = 0.8229 pounds)
(Reporting by David Milliken, Editing by Paul Sandle)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is often measured by the Consumer Price Index (CPI).
House prices refer to the monetary value of residential properties. They can fluctuate based on market demand, economic conditions, and regional factors.
The Bank of England is the central bank of the United Kingdom, responsible for issuing currency, managing monetary policy, and maintaining financial stability.
A mortgage is a loan specifically for purchasing real estate, where the property itself serves as collateral. Borrowers repay the loan over time with interest.
The housing market encompasses the buying, selling, and renting of residential properties. It is influenced by economic factors, interest rates, and consumer demand.
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