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United Kingdom house prices bounce back in June but London weak – Nationwide

“Nevertheless, in our view, household spending is likely to slow in the quarters ahead, along with the wider economy, as rising inflation squeezes household budgets”.The price rises were above expectations, with economist forecasting only modest gains.Nationwide is predicting United Kingdom house price growth will slow to about 2% in 2017, from 4.5% in 2016. Price growth in the South of England has moderated, converging with the rate prevailing in the rest of the country.Nationwide’s latest data comes as other house measures have shown prices dropping since Britain voted for Brexit nearly a year ago.Gardner said: “There has been a shift in regional house price trends”. Annual house price growth edged up to 3.1 per cent from 2.1 per cent in May.The lender also reports that on a quarterly basis the gap of just four percent in house price growth between the strongest and weakest performing regions in 2017 Q2 is the smallest on record.The house price index is likely to remain volatileMr Gardner warned that the index could be volatile over the coming months and that a growing squeeze on household incomes amid rising inflation appeared to be “exerting a drag on housing market activity in recent months”.He said that in the second quarter the gap between the strongest performing region – East Anglia, which saw 5% annual growth – and the weakest – the North, with 1% growth – was the smallest on record.Due to the shortage of properties and subdued building activity, values will still rise this year, he said, predicting an average gain of about 2 per cent.It was always going to be a testing time for the United Kingdom property market in terms of how consumers would react to yet more political upheaval.She said: “If you want to sell at the top end of the price scale you’ll need to make sure your home is better than anything else out there, and be prepared to wait for someone that wants to pay a premium”.Starter Homes: First-time buyers under the age of 40 can access this new scheme.London prices have been affected by a number of factors including stagnant wage growth, mortgage affordability, Brexit-related uncertainty, volatile sterling, and stretched valuations. Many sellers aren’t willing to knock 10% to 15% off the asking price to sell to an investor, and seem happy to wait for the right buyer, rather than taking the hit for a quick sale, ‘ he pointed out.Jonathan Hopper, managing director of Garrington Property Finders, said while the return to a respectable headline growth rate is welcome, it’s more likely to be the product of the chronic lack of supply rather than any acceleration in demand.