Nationwide’s latest house price index has revealed that prices have increased by 1.1% month-on-month in June, proving expert expectations of a continued drop wrong.
Annually, house price growth came up to 3.1%, an increase from the 2.1% recorded in May.
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Nationwide’s chief economist, Robert Gardner explained that whilst monthly growth can be rather volatile, annual growth returned to a more healthy level during June.
“There has been a shift in regional house price trends. Price growth in the South of England has moderated, converging with the rates prevailing in the rest of the country.”
In London, annual house price growth has dropped to only 1.2%, representing the second slowest growth across the UK.
Howard Archer, chief economic adviser, EY ITEM Club, said: “House prices can be volatile from month to month, and June’s rise needs to be seen in the context that house prices had previously fallen in each of the previous three months, which was the first time this had happened since 2009.”
Nevertheless, house prices are being continuously pushed up by the decline in mortgage rates and the lack in houses on the market.
