House prices in the UK continued to decline in June

What has happened? Home prices have fallen over the past year, according to the latest Nationwide's house price index, but remained unchanged on a monthly basis as the market holds up despite mortgage chaos.

Numbers. The price of the average home fell by 3.5% from June 2022 to June 2023 to £262,239 (€305,200). However, compared to the average of £260,736 in May 2023, it has increased by a small margin of 0.1%.

Quote. Robert Gardner, Nationwide's chief economist, said: 'Longer term interest rates, which underpin mortgage pricing, have increased sharply in recent months, in response to data indicating that underlying inflation in the UK economy is not moderating as fast as expected. This has prompted investors to expect the Bank of England to increase its policy rate further and for it to remain higher for longer.'

Sales. According to the latest HMRC transaction data, UK residential transactions in May were 80,020, 27 % lower than May 2022 and 3 % lower than April 2023. 

Source: This is Money

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