Annual house price growth slows in June, but remains in double digits
The latest Nationwide House Price Index shows a modest slowing in annual UK house price growth to 10.7% in June, from 11.2% in May,
The index saw that most regions saw slight slowing in annual growth in Q2. The South West overtook Wales as strongest performing region, while London remained weakest. The region was also strongest performing region through the pandemic.
The latest results are in the table below:
(not seasonally adjusted)
Brean Horne, personal finance expert, at NerdWallet said: “The pandemic could not curtail the upward march of house prices, but many expect that rising interest rates and inflation will. However, today’s figures show that this slowdown is yet to take effect. It’ll come as a blow to those hoping to take their first step onto the property ladder, who are facing a triple-threat. Interest rates are rising, affecting the amount they can borrow; inflation has risen above 9% and could reach as high as 14% later this year, impacting the amount they can save; and if house prices also climb further, many properties will simply be out of reach.”
He added: “So, with prices remaining resilient, people wanting to purchase a property must be pragmatic in their approach. It is vital they first take stock of all financial aspects of their lives, including personal savings, credit scores and future income, before making any major decisions. Further, prospective homebuyers will need to consider potential mortgage deals carefully, seeking out the best options in terms of the rates and loan-to-value offers available. These are uncertain times for homeowners and homebuyers alike. Despite predictions of the market cooling, it’s not going to happen overnight. However, being proactive and exploring the various options available to them will be a good starting point. In doing so, they will likely feel more in control of their options and better positioned to act if house prices do start to decline in the months to come.”