London - UK house-price gains slowed in July, dropping back below 3% again in what Nationwide Building Society says is a “subdued” market.
The 2.9% annual increase followed a 3.1% gain in June. On the month, prices rose 0.3% to an average of £211 671.
Robert Gardner, Nationwide’s chief economist, said while the relative stabilisation in July “appears at odds with recent signs of cooling” - transactions and demand have weakened - values continue to get support from a lack of homes on the market.
The overall trend remains one of a slowdown. Mortgage approvals fell to a nine-month low in June, and Nationwide’s annual house-price measure has dropped from more than 10% in 2014. It said that the economy’s sharp slowdown this year and the supply-demand imbalance will determine the performance for the rest of 2017.
It continues to expect values to rise about 2% this year. “Housing market activity is likely to remain subdued, with the balance in the market shifting a little further towards buyers in the quarters ahead,” Gardner said.
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