House prices are up £26k in the year to June, but growth is now slowing, says Nationwide

A typical house rises £26,000 in a year to cost £271,600 with the South West rising the fastest, but house prices are now slowing slightly, says Nationwide

  • Year-on-year price growth slowed to 10.7% in June, from 11.2% in May
  • The South West overtook Wales as the best performing region with an increase of 14.7%
  • Median UK house price now stands at an all-time high of £271,613

Britain’s house price growth rate slowed slightly in June, rising to 10.7 percent from a year earlier, up from 11.2 percent in May.

Median property price still hit a record £271,613, with prices rising by more than £26,000 in the last year.

On a monthly basis, house prices continue to grow, with a seasonally adjusted increase of 0.3 percent from May to June, according to the Nationwide Building Society.

London continues to have the slowest house price growth, despite having the most expensive properties

This was the 11th consecutive month that house prices had risen.

But the index showed that house price gains slowed in 9 of the 13 UK regions in June.

Robert Gardner, chief economist at Nationwide, said: “The housing market has maintained surprising momentum given mounting pressure on household budgets from high inflation, which has already pushed consumer confidence to a record low.”

However, he added there were “tentative signs of a slowdown” in the housing market as the cost-of-living crisis intensifies and mortgage interest rates continue to rise.

“The market is expected to slow further as pressure on household finances intensifies in the coming quarters, with inflation expected to hit double digits by the end of the year,” it added.

England has the most expensive median price at £309,774, followed by Wales at £208,309 and Northern Ireland where the median price is £181,550.

The South West topples Wales as the region with the biggest increases

The South West overtook Wales as the top-performing region in Q2 2022, with house prices up 14.7% year-on-year, a slight increase on the previous quarter.

It was closely followed by East Anglia, where annual price growth held at 14.2 percent.

The South West has seen significant growth since the start of the pandemic with prices growing faster in the region during the second quarter compared to the rest of the UK.

The South West has seen significant growth since the start of the pandemic with prices growing faster in the region during the second quarter compared to the rest of the UK.

Responding to the index, Tomer Aboody, director of property lender MT Finance, said: ‘With interest rates rising along with inflation, a slowdown in growth is not surprising.

‘However, there is still evidence of confidence in the market due to a desire to buy and take advantage of mortgage rates before they rise further.

‘The South West saw the biggest increase in prices due in part to comparatively lower values ​​to start with, but also the extra space homebuyers can buy in these locations compared to London.

“The capital is still the most expensive part of the country to buy property, so it is experiencing the slowest growth due to affordability issues and a relative lack of able-bodied buyers.”

Since the pandemic, the Southwest has seen sustained growth in home prices. Since the first quarter of 2020, house prices have increased by 27.7%, after taking seasonal effects into account.

The area is followed by Wales, where average prices increased 26.2 percent and in the North West, prices increased 25.8 percent.

In contrast, London has seen the slowest growth rate over the period. House prices in the capital have risen 14.9 percent since the beginning of 2020.

These figures are also reflected in the last quarter. Price growth in the Northwest rose to 13.3 percent on-year, from 12.4 percent in the first quarter.

London remained the lowest performing UK region, with annual price growth slowing to 6.0%, from 7.4% in the previous quarter.

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