British property price growth is now at a two-year low.
Nationwide revealed in its latest House Price Index that property prices in June fell by 0.2% from the previous month to reach £195,055 ($US304,315). In June 2014, house prices stood at £188,903 ($US294,751). This means annual house price growth moderated to 3.3% in June, from 4.6% in May.
“This maintains the gradual downward trend that has been in evidence since mid-2014, though this is the smallest annual rate of increase for two years,” said Robert Gardner, Nationwide’s Chief Economist.
“House price growth continues to outpace earnings, but the gap is closing, helped by a pickup in annual wage growth, which moved up to 2.7% in the three months to April from 1.9% at the start of the year.
“The slowdown in house price growth is not confined to, nor does it appear to be driven primarily by, developments in London. In quarter on quarter terms, London has continued to see price growth at or above the rate in the UK overall over the past three quarters, while the annual rate of price growth in the capital remains the second highest in the country.
Here’s the regional house price breakdown, which showed eleven of the thirteen UK regions recorded a slowdown in the annual rate of growth in the second quarter of this year. “Most parts of the country continued to see annual house price gains – the exceptions were Wales and Scotland, which recorded small declines,” said Gardner: