House price growth slumps to five-year low
ANNUAL house price growth in Britain has fallen to a five-year low, as a result of continued subdued levels of new buyer inquiries and a lack of properties on the market, according to Nationwide.
Its latest house price index found that annual growth was 2pc in June, down from 2.4pc in May, while monthly prices were up 0.5pc after taking account of seasonal factors.
London again has proved to be the worst performer, with prices down 1.9pc year on year, the only region to see a decline. Nevertheless, prices in the capital are still more than 50pc above their 2007 peak, while prices in the UK overall are only 15pc higher.
London’s average property price is now £468,845, compared to a UK average of £214,578. Nationwide said the East Midlands was the strongest performing region in England, and also the UK, with prices up 4.4pc annually.
Scotland was the only region to see a notable pick-up in annual price growth this quarter – to 3.1pc – while there was a softening in price growth in Wales to 4pc, and Northern Ireland recorded annual price growth of 2.1pc. England had the weakest growth, with prices up just 1.3pc year on year.
Robert Gardner, Nationwide’s chief economist, said that annual house price growth had been “confined to a fairly narrow range” of about 2pc to 3pc over the past 12 months, suggesting “little change in the balance between demand and supply in the market over that period”.
He added: “There are few signs of an imminent change. Surveyors continue to report subdued levels of new buyer inquiries, while the supply of properties on the market remains more of a trickle than a torrent.”