United Kingdom: Housing market looks soft in June
According to the Nationwide Building Society (NBS), house prices in the United Kingdom rose 0.1% in June compared to the previous month in seasonally adjusted terms, contrasting May’s 0.2% decline. On an annual basis, house prices rose 0.5% in June, down from May’s 0.6% increase. The average house price in June was GBP 216,515 (June 2018: GBP 215,444). Ongoing weakness in the housing market is likely linked to consumer pessimism and intense Brexit uncertainty causing households to delay home purchases.
Going forward, house prices are likely to continue to rise slightly in annual terms, supported by a strong labor market, still-low borrowing costs and the government’s Help To Buy scheme. However, Brexit uncertainty will likely continue to dampen market activity.