UK house prices rebound after worst streak in eight years

(iStock)
(iStock)

London - UK house prices rebounded in June, halting the worst streak for the market in eight years, according to Nationwide Building Society.

Values rose 1.1% from the previous month, the most since April 2015, taking the annual rate of change up to 3.1%. The average value last month was £211 301.

The increase follows months of data pointing to a housing slowdown, with lender Halifax reporting in May the slowest quarterly growth in home values in four years. 

It is “unclear” whether these gains reflect strengthening demand and continued low mortgage rates, or the lack of homes on the market, with the number of properties on estate agents’ books remaining close to all-time lows, Nationwide’s Chief Economist  Robert Gardner said.

Due to that shortage of properties and subdued building activity, values will still rise this year, he said, predicting an average gain of about 2%. Even so, he warned that Britain’s negotiations to leave the European Union may weigh on activity.

“Given the ongoing uncertainties around the UK’s future trading arrangements, the economic outlook remains unusually uncertain,” he said. “Housing market trends will depend crucially on developments in the wider economy.”

London’s annual price growth cooled to 1.2%, the slowest pace for the capital since 2012.

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