UK house prices fell by 0.1% in June compared with the same month last year, marking the first annual decline since December 2012, according to the Nationwide Building Society. The typical home is now worth £216,403.
The building society also reported a 1.4% month-on-month drop in property values from May, as the coronavirus lockdown severely impacted the housing market. Sales plummeted and viewings were halted when the sector was effectively frozen.
Nationwide said the magnitude of the economic shock made a house price fall unsurprising, and described the outlook for the housing market as 'highly uncertain' in the coming months. While activity has resumed in much of the UK, buyers and sellers face fresh unease about job and income prospects.
Robert Gardner, Nationwide's chief economist, noted that government measures to support the economy and jobs would dilute the potential impact of the pandemic. However, commentators warned that the second half of 2020 would be a real test as government support is withdrawn and unemployment rises.
