UK House Prices See Strongest Decline Since 2023
Connect UK Auctions reports that UK house prices fell by 0.8% in June to an average of £271,619, according to Nationwide data cited by Bloomberg. This was the steepest monthly fall since February 2023 and surprised economists, who had expected a small rise of 0.1%. Annual growth slowed to 2.1%, which is a fall in real terms once inflation is taken into account.
The April increase in stamp duty is seen as a major cause, adding thousands of pounds to purchase costs and weakening demand, particularly among first-time buyers and those moving up the ladder. Nationwide’s chief economist Robert Gardner linked the softer growth to this change. Despite solid wage growth, many households are reluctant to use savings given high mortgage rates, living costs and global uncertainty. Even so, Bank of England figures showed mortgage approvals unexpectedly rose in May.
The data also shows differences by region and property type. London recorded annual growth of just 1.4%, among the weakest in the country. Flat prices have stalled after a 2.3% rise in the previous quarter, while terraced houses are outperforming with 3.6% annual growth, possibly reflecting demand for more space and better value.
Bloomberg Economics remains cautiously optimistic, with economist Ana Andrade forecasting annual growth of about 2.5% in the second half of the year as incomes rise and mortgage rates fall. The article concludes that June’s figures reflect a market under strain rather than the start of a prolonged downturn.
