United Kingdom: House prices remain flat in June
June 30, 2011
In June, the average price of a typical property in the U.K. remained flat over the previous month, based on data collected by the mortgage lender Nationwide Building Society (NBS). The reading was below the 0.3% price increase observed in May but was in line with market expectations. On an annual basis, house prices dropped 1.1% (May: -1.2% year-on-year) and, over the peak reached in October 2007, prices are down 9.6%. The sideways trend in house prices reflects both demand and supply-side factors, as sluggish economic growth continues to weigh on housing market demand and the rate of building remains low, constraining the total supply of properties in the market. According to NBS, house prices are likely to remain roughly flat through the remainder of 2011.