House price growth across the U.K. continued to move sluggishly in June, as annual increases dropped, according to a report Friday from U.K. bank and mortgage lender Halifax.
"House prices continue to remain broadly flat," said Russell Galley, managing director at Halifax, in the report. Prices rose 1.8% in the three months to June compared to the same time frame a year ago, but that’s a slowdown from the 1.9% annual growth logged in May, the 2.2% annual growth logged in April, and from the 2.7% annual growth seen in March.
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The average house price in the U.K. now stands at £225,654 (US$299,291), the report said.
On a short-term basis, prices rose just 0.3% in June compared to May, but the monthly figures are more volatile than the quarterly or annual measures, which provide the clearest indication of overall market trends, the report said.
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Though price growth is stagnant, property sales rose in May. There were 64,526 mortgages approved in May, a leading indicator of completed house sales, the report said.
That’s a 2.5% month-on-month increase, ending the run of three consecutive monthly falls, according to the report.
Going forward, Halifax predicts continuing low mortgage rates, good levels of affordability, a robust labor market and an enduring shortage of properties for sale should underpin price growth.