Pace of house price growth slows as average price hits new record of £271.6k
House prices saw a slight slowdown in growth this month as the price tag of an average UK home hit a new record of £271,613.
According to the Nationwide House Price Index, published on Thursday morning, UK annual house price growth slowed to 10.7 per cent in June.
This was a subdued pace of growth compared to 11.2 per cent in May, while last month average prices increased by £26,000.
London continued to be the weakest performing UK region, with annual price growth slowing to six per cent, from 7.4 per cent in the previous quarter.
Analysts warned intensifying household pressures on finances could result in a dampened market in the months to come.
Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “Even though prices are not rising quite as rapidly as they have been, property market resilience continues to defy the laws of economic gravity.”
Activity was “more determined by lack of choice than recent cost-of-living and interest rate rises,” Leaf added.
He said: “There is no question that increasingly-stretched affordability is holding back some, as well as slowing house price growth and the number of transactions. But there is still demand for correctly-priced properties, underpinned by low unemployment and a race for space which is still not satisfied.”
Borrowers have seen rate increases in recent months, with mortgage products now around three to four per cent typically.