UK house price growth edged back in July, after a surprisingly strong month in June, new figures have shown.
Figures published this morning by Nationwide showed average house price rose to £211,671 in July, up 2.9 per cent from the year before, although that figure was down from 3.1 per cent in June.
However, on a quarterly basis, growth crept up to 0.3 per cent in the three months to the end of July, from a fall of 0.1 per cent in the three months to June.
On a month-on-month basis, a more volatile measure, prices also edged up 0.3 per cent, down from 1.1 per cent in June.
The figures confirm a broader pattern of subdued house price growth as political uncertainty puts potential sellers off moving house, with the number of house sales falling to an eight-month low in June.
Yesterday research by accountancy firm Moore Stephens suggested one in five high street estate agents are at risk of going out of businesses as the falling number of properties being put on the market combines with competition from online rivals to squeeze small firms.
"This pattern looks set to be maintained in the near term. Survey data point to relatively sluggish levels of new buyer enquiries, but at the same time surveyors report that relatively few properties are coming onto the market (and at a time when the number of homes on estate agents’ books is already close to 30-year lows)," said Robert Gardner, Nationwide's chief economist, today.
"Ultimately, housing market developments will depend on wider economic performance. The UK economy slowed noticeably in the first half of the year and there has been little to suggest a significant departure from recent trends in the quarters ahead."