Nationwide: June house price growth fell to 10.7%

The slowdown to 10.7% from 11.2% in May left the average UK house price at £271,613, according to Nationwide’s House Price Index.

However, the market still saw prices grow by 0.3% in June, which marked the 11^th monthly increase in a row. Average house prices have lifted by over £26,000 in the past year.

The South West overtook Wales as the strongest performing region in Q222, with house prices up 14.7% year-on-year, a slight increase from the previous quarter.

This was closely followed by East Anglia, where annual price growth remained at 14.2%.

Wales saw a slowing in annual price growth to 13.4%, from 15.3% in the first quarter.

Price growth in Northern Ireland was similar to last quarter at 11%. Meanwhile, Scotland saw a 9.5% year-on-year rise in house prices.

London remained the weakest performing UK region, with annual price growth slowing to six percent, from 7.4% in the previous quarter.

Nationwide chief economist Robert Gardner said: “UK annual house price growth slowed modestly to 10.7% in June, from 11.2% in May.

“There are tentative signs of a slowdown, with the number of mortgages approved for house purchases falling back towards pre-pandemic levels in April and surveyors reporting some softening in new buyer enquiries.

“Nevertheless, the housing market has retained a surprising amount of momentum given the mounting pressure on household budgets from high inflation, which has already driven consumer confidence to a record low.

“Part of the resilience is likely to reflect the current strength of the labour market, where the number of job vacancies has exceeded the number of unemployed people in recent months.

“Furthermore, the unemployment rate remains close to 50-year lows. At the same time, the stock of homes on the market has remained low, which has helped to keep upward pressure on house prices.”