House prices growth poor, just 0.3 percent in June: Nationwide |
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Thu, 29 Jun 2006 12:45
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LONDON - House price growth in the UK was on the slower side in June with prices increasing by just 0.3 percent, according to the latest figures by the Nationwide Building Society.
Britain's biggest building society said that the annual house price was recorded at 5 percent in June, up from the 4.7 percent registered in May. Nationwide said that the average price of a house in the UK is now £165,730. It added that there was an expected dip in the activity on the housing market due to the World Cup, but said that the market should remain stable. House price growth slowed to 1 percent on a three-month basis ending June. This was less than the 1.6 percent recorded in the previous three months.
"The three-monthly growth rate clearly shows the slowing trend in house price inflation since March. Prices increased by 1 per cent in the three months to June, compared with 1.6 per cent to May and 2.1 per cent in the three months to March," said Fionnuala Earley, the Nationwide's chief economist. "The annual rate of growth increased slightly to 5 per cent in June, but only because there was a fall of 0.1 per cent this time last year." Nationwide also said that affordability constraints would continue to deter first time buyers.
Reacting to the survey, Howard Archer, an economist at Global Insight said that house prices could be leveling up after seeing modest increases in the first part of 2006, "Significantly, already stretch affordability has been adversely affected in recent months by house price inflation moving back well above average earnings growth, and affordability will be pressurized further over the coming months by modest earnings growth and markedly increased utility bills," he added.
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Nationwide expects subdued growth for property market in 2006 