MNI: UK Nationwide House Prices Pick Up In July

--UK Nationwide May house price index +0.6% m/m, 2.5% y/y

--Annual House Price Picks Up From June's Slowest In 5 Years

     LONDON (MNI) - UK house prices rose in June, up 0.6% on the month, with

annual gains accelerating to 2.5%, up from 2.0% in June, the latest Nationwide

House Price Index showed.

     Annual house price growth in the Nationwide series has held in a 2 to 3%

range since May 2017, but is now bumping along at the lower ends of the range,

although bouncing from last month's levels, which was the slowest in 5 years. 

     Nationwide's Chief Economist Robert Gardiner said house prices remains in a

narrow trading range.

     "There was a slight uptick in annual house price growth in July to 2.5%,

from 2.0% in June. Nonetheless, annual house price growth remains within the

fairly narrow range of c2-3% which has prevailed over the past 12 months,

suggesting little change in the balance between demand and supply in the market.

     "Providing the economy does not weaken further, the impact of a further

small rise in interest rates on UK households is likely to be modest," he said.

     Gardner didn't think the likely Bank of England interest rate hike,

expected following Thursday's decision by the Monetary Policy Committee, would

have a great impact.

     "While the impact for most borrowers is likely to be modest, it's important

to note that household budgets have been under pressure for some time because

wages have not been rising as fast as the cost of living. Indeed, in real terms

(i.e. after adjusting for inflation) wage rates are still at levels prevailing

in 2005," he added.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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