House prices growth in the UK slowed to a five-year low in June, according to the latest figures from the Nationwide.
There was no sign of a belated spring bounce, with house price figures rising by just 2 per cent over the 12 months to June.
This was down on the 2.4 per cent annual figure recorded in May.
However, Nationwide said house prices rose marginally by 0.5 per cent from May to June, making the average home worth £215,444.
House prices in London continue to fall, with prices in the capital down 1.9 per cent year-on-year.
Despite these house price falls, Nationwide pointed out that house prices in the capital are still 50 per cent above their 2007 peak, while prices in the UK as a whole are only 15 per cent higher.
Over the last year the East Midlands continues to be the strongest performing region, with prices up 4.4 per cent year-on-year.
Nationwide’s chief economist Robert Gardner says: “Annual house price growth has been confined to a fairly narrow range of between 2 and 3 per cent over the past 12 months, suggesting little change in the balance between demand and supply in the market.”
He says there are few signs of imminent change. “Surveyors continue to report subdued levels of new buyer enquiries, while the supply of properties on the market remains more of a trickle than a torrent.”
He predicted that nationally house prices would rise by just 1 per cent over 2018. These figures are all on a seasonally adjusted basis.
Octane Capital chief executive Jonathan Samuels says: “Prices may have nudged up slightly in June but the market overall is in marked slowdown mode.
“With Brexit on the horizon, households feeling the pinch and interest rate uncertainty lingering, a lot of prospective buyers are sitting tight.”
Former RICS chairman and north London estate agent Jeremy Leaf adds: “One the one hand the squeeze on incomes and unrealistic asking prices is reducing activity and confident to move, particularly in price-sensitive areas such as London.
“One the other hand the market continues to be supported by low interest rate and overall supply shortages, although we have found recently that listings and viewings are on the rise. This will translate into more sales if buyers and sellers recognise the new market realities.”
