UK house price growth stalled for a second consecutive month in June, with the average price of a typical home edging down to £277,484 from £278,024 in May, according to Nationwide. The 0.1% month-on-month decline followed a 0.6% fall in May, defying economists' expectations of a 0.1% rise.
Estate agents reported a subdued market, with Amy Reynolds of Antony Roberts noting a 'steady and selective' mood rather than a boom. She predicted a quieter summer, with activity picking up in autumn once buyers gain clarity on interest rates and geopolitical tensions ease.
Mortgage rates remain elevated, with the average two-year fixed rate at 5.53% on Tuesday, up from 4.83% before the Iran war began. Gareth Lewis of MT Finance said valuers are cautious and buyers are negotiating hard on price, reflecting a softening market.
Housebuilder shares fell on the news, with Barratt Redrow down 1.6%, Persimmon dipping 0.5%, and Berkeley falling 1.4%. However, Nationwide noted that annual house price growth rose to 2.2% in June from 1.7% in May, with all UK regions seeing increases, led by Northern Ireland at 8.6%.
Nationwide chief economist Robert Gardner said easing oil prices could reduce the need for further interest rate rises, potentially lowering mortgage costs. Brent crude fell to $73 a barrel, down from a peak of over $120 earlier this year.
