Nationwide: House prices unchanged in June
The latest house price index from the Nationwide Building Society has revealed house prices remained unchanged in June after a 0.3% rise in May – in line with expectations.
On an annual basis, house prices are now 1.1% lower than this time last year with the average UK home costing £167,208.
The housing market remains subdued as a lack of buyers, together with the ongoing lack of mortgage availability, means demand for housing is weak.
The prediction for house prices in 2011 is for a slight fall as demand for housing is expected to stay weak as a result of the uncertainty surrounding the economy and the Government’s massive spending cuts.
The Nationwide’s chief economist, Robert Gardner, comments: “The property market has moved sideways over the past six months, and June’s data suggest that trend is being maintained through the summer months.”
Other reports are painting a similar story – the Halifax will publish its house price index next week.
Yesterday, the Bank of England said mortgage approvals remained weak in May with 45,940 loans approved during the month, lower than forecasts of a level of 46,100.
In other news today, a survey by GfK NOP revealed consumer sentiment fell more than expected in June with the consumer confidence index dipping 4 points to -25.