Average UK house prices hit record high in June but slowdown signs emerge

theguardian.com:

The growth of UK house prices slowed this month, an index shows, as the weakening economy, cost of living squeeze, and rising interest rates cooled the market.

Prices were up by 10.7% in June, slowing from 11.2% in May, Nationwide building society said.

Prices rose by 0.3% in June, a notable slowdown on May’s 0.9% house price inflation – but still the 11th monthly rise in a row.

The average UK house price hit a new record high in June but there are “tentative signs of a slowdown”, according to an index.

Across the UK, the average house price in June rose to a record £271,613, up by 0.3% month on month. That was a slowdown on May’s 0.9% increase on April – but still the 11th monthly rise in a row.

Robert Gardner, Nationwide’s chief economist, said average prices had risen by more than £26,000 in the past year, adding: “There are tentative signs of a slowdown, with the number of mortgages approved for house purchases falling back towards pre-pandemic levels in April and surveyors reporting some softening in new buyer inquiries.

“Nevertheless, the housing market has retained a surprising amount of momentum given the mounting pressure on household budgets from high inflation, which has already driven consumer confidence to a record low. Part of the resilience is likely to reflect the current strength of the labour market, where the number of job vacancies has exceeded the number of unemployed people in recent months.”

Gardner said that, at the same time, the stock of homes on the market has remained low, keeping an upward pressure on house prices.

“The market is expected to slow further as pressure on household finances intensifies in the coming quarters, with inflation expected to reach double digits towards the end of the year,”