House prices remain static as confidence dips

House prices inched up 0.1% last month, or 0.5% over the year, according to the Nationwide.

“Housing market trends are likely to continue to mirror developments in the broader economy,” said Robert Gardner, Nationwide’s chief economist. 

“While healthy labour market conditions and low borrowing costs will provide underlying support, uncertainty is likely to continue to act as a drag on sentiment and activity, with price growth and transaction levels remaining close to current levels over the coming months.”

Prices fell in London for the eighth quarter in a row, the building society said.

 Jonathan Samuels, CEO of the property lender, Octane Capital, said: “The property market is usually buoyant in June but political events have taken the pressure out of it like a slow puncture.

 

“If it weren’t for rock-bottom mortgage rates, the strength of the jobs market and low supply, the market would likely be showing negative growth.

 

“It’s a patchwork market at present. London and the South East remain under the cosh while many other regions of the country are delivering relatively strong growth.

 

“The South East corner of the UK continues to pay for its exuberant price growth of yesteryear.

 

“There is a stark difference between the attitudes of professional investors and owner-occupiers.

 

“Professional investors are piling into property with an alacrity not seen for years, while owner occupiers are walking on eggshells in comparison.”