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House prices fall in June

House prices fell in June, as the annual pace of decline reached its highest level for almost three years, indicating that the economy still remains weak.

Prices fell by 0.6% in June, following a 0.2% rise in May, which left prices at a level 1.5% lower than over the same period a year ago. it was also the lowest reading for annual growth since August.

Commenting on the figures, Nationwide’s chief economist Robert Gardner said: “The slightly weaker trend we’ve observed since March is unsurprising, given the difficult economic backdrop, with the UK economy dipping back into recession at the start of the year and few signs of a near-term rebound.”

The outlook for house prices still remains highly uncertain, as economic conditions are set to remain challenging.

While efforts by policymakers to boost credit and lowest costs will help with demand, although the supply of housing is set to remain constrained as construction fails to keep pace with the number of households being created.

Gardner added: “Overall, this suggests a continuation of the pattern experienced over the past two years, with prices remaining fairly stable over the next twelve months.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .