House prices growth remains stable in June, Nationwide finds
UK house prices grew more than expected in June, despite the uncertainty around the referendum on European Union membership, according to data from building society Nationwide.
Nationwide's house price index in rose 0.2% over the preceding month, the same rate of month-on-month growth seen in May but higher than the 0.0% consensus estimate.
On a seasonally adjusted annual basis, the index rose 5.1% in June, up from the 4.7% in May and higher than the 4.9% the market expected.
“It has become difficult to gauge the underlying pace of demand in recent months, due to the surge in house purchase activity in March ahead of the introduction of Stamp Duty on second homes on 1 April," said Robert Gardner, Nationwide's chief economist.
“It will therefore be difficult to assess how much of the likely fall back in transactions in the quarters ahead is because buyers brought forward purchases to avoid additional Stamp Duty liabilities, and how much is due to increased economic uncertainty following the referendum result. Gauging the likely impact on house prices will be even more difficult."
He said it was encouraging for housing demand that the labour market had remained robust in recent months and that borrowing costs also remained close to historic lows, while a record low number of properties on estate agents' books will also provide underlying support for prices even if demand softens.