Pedro Goncalves writes:
UK house prices recorded a modest increase in July, as easing mortgage costs and stronger wage growth continued to support buyer demand.
According to data by Nationwide, the average UK house price rose 0.6% month on month, taking the annual growth rate to 2.4%, up from 2.1% in June. The average home now costs £272,664, compared with £271,619 the previous month.
“July saw a modest pick-up in the rate of annual house price growth to 2.4%, from 2.1% in June,” said Nationwide’s chief economist Robert Gardner. “Prices increased by 0.6% month on month, after taking account of seasonal effects.”
Gardner added that, despite recent volatility, activity levels remain broadly stable. “Looking through the volatility generated by the end of the stamp duty holiday, activity appears to be holding up well,” he said. “Indeed, 64,200 mortgages for house purchase were approved in June, broadly in line with the pre-pandemic average, despite the changed interest rate environment.”