United Kingdom: House prices moderate in June
June 30, 2015
In June, home prices in the U.K. fell 0.2% over the previous month, which contrasted the 0.3% increase observed in May, according to the Nationwide Building Society (NBS). June’s figure marked the steepest drop since September 2012. On an annual basis, home prices rose 3.3% (May: +4.6% year-on-year). The average house price was GBP 195,055 (May 2015: GBP 195,166).
June’s deceleration continues the gradual downward trend that had been in evidence since mid-2014. NBS added that, “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.”
According to the Q1 2015 quarterly release, NBS data showed that, geographically speaking, the strongest increases in prices are still in the city of London, where the average house price rose 12.7% year-on-year. This is markedly higher than the 5.9% rise that has been recorded in the U.K. as a whole. The regions other than London that saw higher-than-average price increases were: Outer Metropolitan, Outer South East and East Anglia.
Author: Dirina Mançellari, Senior Economist