According to the Nationwide House Price Index, annual house price growth has slowed to a five-year low.
- June 2018 UK house price growth down to 2% year on year, from annual growth of 2.4% in May 2018.
- Average house prices up 0.5% month-on-month from £213,618 in May 2018 to £215,444 in June 2018.
- London average house prices down 1.9% year-on-year.
According to economists, the changing nature of supply and demand for homes is contributing to a general slowdown. House price growth is now more in line with inflation and wage growth, and fewer house sales are contributing to a general housing slowdown. With some economic uncertainty still looming and Brexit negotiations in full swing, the knock-on effect is beginning to hit high street estate agents, 7,000 of which are showing signs of financial distress.
The Monetary Policy Committee voted in favour of keeping interest rates at 0.5% in June, perhaps in part due to some economic weakness and poor GDP figures. The latest Nationwide figures are unlikely to provide much positive news for the Bank of England, in seeking positive signs to help a vote for a rate rise.
Robert Gardner, Nationwide Chief Economist: “There are few signs of an imminent change. Surveyors continue to report subdued levels of new buyer enquiries, while the supply of properties on the market remains more of a trickle than a torrent.”
Hiten Ganatra, Managing Director of Visionary Finance: “The positive news in the market place is that remortgaging is becoming more competitive amongst lenders, as they attempt to secure customers into fixed deals. At Visionary Finance, we help our customers secure competitive mortgage deals, from a broad range of lenders. And we do not charge any brokerage fees. We recover our costs from the lender.”