House prices rose at their slowest annual rate for five years this month, according to figures from Nationwide reported by Reuters.
The mortgage lender said the slowdown was linked to relatively low economic growth and pressure on household spending. UK house prices were 2.0 percent higher in June 2018 than June 2017, a reduction from May’s 2.7 percent rate.
The slowdown is the largest falling off in five years but still lower than a recent 1.7 percent predicted in a Reuters poll. June saw prices rising 0.5% compared to a predicted 0.3% rise.
Nationwide economist Robert Gardner said: “There are few signs of an imminent change. Surveyors continue to report subdued levels of new buyer enquiries, while the supply of properties on the market remains more of a trickle than a torrent.”
Nationwide said it expected house price rises to slow by 1 percent in 2018 as whole. Economists expect the Bank of England to raise interest rates by 0.25% to 0.75% in August, the second increase since the global financial crisis.