Nationwide sees house price growth pick up

Nationwide sees house price growth pick up

The annual rate of house price growth increased slightly in June, according to Nationwide.

The nation’s biggest building society said the annual rate of house price growth increased by 5.1 per cent, up from 4.7 per cent in May.

Prices increased 0.2 per cent between June and May, with the average property price set at £204,968.

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Robert Gardner, chief economist at Nationwide, said it was difficult to assess how much of the likely fall-back in transactions in the quarters ahead due to buyers bringing forward purchases to avoid additional stamp duty liabilities.

Mr Gardner said it was also difficult to quantify how much of the house price growth was due to increased economic uncertainty following the referendum result.

He added: “Ultimately, conditions in the housing market will be determined by conditions in the wider economy, especially the labour market. It is too early to assess the impact of the referendum vote on the economy.

Jonathan Hopper, managing director of buying agents Garrington Property Finders, said: “Nationwide’s June data gives a snapshot of the housing market immediately before the Brexit referendum.

“It shows a functioning market with decent price growth but limited supply – a languid calm before the storm.

“Unfortunately this data is about as much use in predicting the future course of the property market as sun-dappled photos of the summer of 1914. It’s a historical record of a lost age before Europe changed forever.”