The tempo of development in UK home costs in June slowed from the earlier month, with “tentative” indicators of a slowdown available in the market, mortgage lender Nationwide mentioned on Thursday.
Home costs in June have been 0.3% increased than in Might, once they rose 0.9%, and have been up 10.7% yr on yr, a slowdown from Might’s annual development of 11.2%. Economists had forecast month-to-month and annual worth rises of 0.5% and 10.8% respectively.
“There are tentative indicators of a slowdown, with the variety of mortgages accredited for home purchases falling again in direction of pre-pandemic ranges in April and surveyors reporting some softening in new purchaser enquiries,” mentioned the constructing society’s chief economist Robert Gardner.
“However, the housing market has retained a stunning quantity of momentum given the mounting stress on family budgets from excessive inflation, which has already pushed shopper confidence to a document low.”
Gardner mentioned a robust labour market and low housing inventory availability had helped to maintain upward stress on home costs. The common worth of a house rose to a document £271,613.
“The market is predicted to gradual additional as stress on family funds intensifies within the coming quarters, with inflation anticipated to succeed in double digits in direction of the tip of the yr,” he mentioned.
“Furthermore, the Financial institution of England is extensively anticipated to boost rates of interest additional, which can even exert a cooling affect available on the market if this feeds via to mortgage charges.”
Reporting by Frank Prenesti at Sharecast.com