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UK property prices were up by 0.6 per cent from June to July, according to the July house price index from Nationwide.
Nationwide’s July house price index found that annually, prices were up 2.5 per cent. The average house price now stands at £217,010.
The figures mark a slight improvement on last month, when prices were up by just 2 per cent year on year.
Nationwide chief economist Robert Gardner spoke about the slight growth, saying: ‘Nonetheless, annual house price growth remains within the fairly narrow range of circa 2.0-3.0 per cent which has prevailed over the past 12 months, suggesting little change in the balance between demand and supply in the market.’
Nationwide has suggested that little will change in the immediate future due to subdued economic activity. Increasingly stretched household budgets are also limiting investment potential. However, borrowing costs should remain low which is promising for the market.
Gardner continued: ‘Overall, we continue to expect house prices to rise by around 1 per cent over the course of 2018.’
Co-founder of property investment platform British Pearl, Kobi Lehrer, rebutted with a more positive perspective, saying: ‘These figures represent the best growth we have seen since January and call for a collective sigh of relief for those who feared the market was entering a terminal decline. Last month’s collapse in the growth figure was the lowest for five years but monthly changes can produce these lurches, before growth recovers quickly the following month as if to balance it out.’
He continued: ‘While annual rises of over 5 per cent seem to be behind us for now, investors are still finding that kind of growth if they pick wisely, and that goes for yields too. The HPIs have a tendency to mask pockets of opportunity, just as the FTSE disguises the outperformance of individual companies. It will be some comfort to investors and homeowners that a rate rise this week probably still won’t have the pulling power to force a significantly greater correction in prices lower.’