The start of summer hasn’t ushered in any particularly optimistic news for the U.K. property market.
Annual house price growth in the region—though continuing to gradually rise—slowed to a five-year low in June, according to a report Tuesday from U.K. bank Nationwide.
Property prices rose 2% in June, putting the average house price at £215,444 (US$283,359).
The 2% rise was a decline from both the 2.4% growth logged in May, the 3.1% growth logged last June and the 5.1% growth seen in June 2016, the report said.
“Annual house price growth has been confined to a fairly narrow range of 2-3% over the past 12 months, suggesting little change in the balance between demand and supply in the market over that period,” said Robert Gardner, Nationwide’s chief economist, in the report.
“There are few signs of an imminent change. Surveyors continue to report subdued levels of new buyer enquiries, while the supply of properties on the market remains more of a trickle than a torrent,” Mr. Gardner added.
On a quarterly basis, most regions saw a slowing in their annual rate of house price growth. The only region to see a notable pickup was Scotland, where price growth accelerated to 3.1% annually from 0.2% annually in the first quarter, the report said.
Meanwhile, London was the only region to log a decline in annual price growth, falling to -1.9% from last year.
Despite the declines, prices in the capital remain more than 50% above their 2007 peak, while prices in the U.K. overall are only 15% higher, the report said.
Looking forward, Mr. Gardner predicts that subdued economic activity and ongoing budget pressures will continue to drag on housing market activity and house price growth this year, he said.
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