MNI: UK Nationwide House Prices Pick Up In June, Slow On Year

--UK Nationwide May house price index +0.5% m/m, 2.0% y/y

--Annual House Price Inflation Slowest in 5 Years

     LONDON (MNI) - UK house prices rose in June, up 0.5% on the month, with

annual gains decelerating to 2.0%, down from 2.4% in May, the slowest annual

gain in 5 years, 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. 

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

narrow trading range.

     "Annual house price growth fell to its slowest pace for five years in June.

However, at 2% this was only modestly below the 2.4% recorded the previous

month. Indeed, annual house price growth has been confined to a fairly narrow

range of c2-3% over the past 12 months, suggesting little change in the balance

between demand and supply in the market over that period," he 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. Looking further ahead, much

will depend on how broader economic conditions evolve, especially in the labour

market, but also with respect to interest rates," he added.

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

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