United Kingdom: Recovery in home prices stalls in June
July 28, 2012
In June, home prices dropped 0.6% over the previous month, according to data collected by the mortgage lender Nationwide Building Society (NBS). The figure contrasted the 0.2% rise recorded in May (previously reported: +0.3% month-on-month) and market expectations that had home prices rising 0.1%. As a result, the price of a typical U.K. property dropped to around GBP 165,700, which was 1.5% below the level observed in the same month last year, representing a deterioration over the 0.7% contraction seen in May. The decline comes amid an adverse economic environment, with the economy contracting for three consecutive quarters. Furthermore, according to Nationwide, the subdued reading may also relate to the ending of the stamp duty holiday in March, which provided a temporary boost in early 2012, as buyers brought forward purchases that would otherwise have taken place later in the year.