UK house prices inch up in June

British house prices saw a modest increase in June from the previous month, despite the lingering effects of elevated borrowing costs, mortgage lender Nationwide reported on Monday.

Prices edged up by 0.2 per cent on a monthly basis and were 1.5 per cent higher compared to June of the previous year. This marks a slowdown from the pandemic-induced boom in the housing market, exacerbated by the Bank of England’s last year’s decision to raise interest rates to their highest levels since 2008.

Nationwide data also revealed that current prices remain approximately 3 per cent below their peak reached two years ago. Chief economist Robert Gardner noted that while earnings growth has outpaced house price increases in recent years, it hasn’t sufficiently countered the impact of increased mortgage rates.

Meanwhile, in London, prices rose by 1.6 per cent during the April-to-June period compared to the same quarter in 2023, indicating some regional variations in the market.

Looking ahead, a Reuters poll of housing market analysts published on May 29 projected a 1.8 per cent increase in property prices across Britain for the year 2024, buoyed by rising wages, which may help improve affordability.

Attribution: Reuters.