Slowdown in UK annual house price growth to 1.8% in July – Nationwide
Annual house price growth slowed to 1.8% in July from 2.2% in June, with the average price at £277,542.
House prices were up 0.1% month-on-month, according to data from Nationwide.
Robert Gardner, chief economist at Nationwide, said: “Market activity and house prices have remained soft in recent months, in part reflecting the uncertain economic backdrop.”
He added: “Financial market expectations for the future path of bank rate have been volatile, reflecting shifting views about the inflationary implications of events at home and abroad.”
A housing market seeking balance
Nathan Emerson, CEO of Propertymark, commented: “Steady house prices reflect a housing market that continues to find balance despite ongoing economic and political change. A combination of constrained housing supply, changing borrowing costs and varying levels of buyer demand continues to influence market conditions, while the national figures mask significant regional variation across the UK.
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“Yesterday’s interest rate decision, with rates remaining unchanged, provides greater certainty for borrowers and allows prospective buyers to plan with a clearer understanding of future mortgage costs.”
Ian Futcher, financial planner at Quilter, commented: “This relatively subdued snapshot of the housing market shows activity is far from booming.”
He continued: “For now, the housing market remains in a holding pattern. Any meaningful shift in house prices will depend on how inflation, interest rates and consumer confidence evolve over the coming months, alongside whether mortgage affordability begins to improve.”
Taking advantage of the buyer’s market
Gareth Lewis, deputy CEO of specialist lender MT Finance, said: “Nationwide’s figures reflect a softening housing market. From a lending perspective, we are seeing valuers cautious on value while buyers are looking for a steal and prepared to negotiate hard on price.”
That view was echoed by Mark Harris, chief executive of mortgage broker SPF Private Clients, who said: “Flat monthly house prices suggest those who are transacting are not willing or able to pay over the odds but are taking advantage of this buyers’ market and negotiating accordingly.”
Despite this, some in the industry believe the market remains resilient. Nicky Stevenson, managing director of Fine & Country, said “the market is still holding steady in a way that is sustainable to both buyers and sellers.”
She added: “Buyers are active, but they are taking their time and weighing up affordability carefully before committing.”
Nicholas Finn, managing director of Garrington Property Finders, said buyers currently hold the upper hand in many areas of the market.
He said: “As a result the few serious buyers who are out there are spoilt for choice and making the most of their powerful negotiating position. There’s a surfeit of homes for sale in London and the South East; buyers who have their financial ducks in a row have their pick of the crop and can often secure sizable discounts off the asking price.”
