Recent data has revealed that this month, yearly house price growth in the UK slipped to 2%, its slowest pace in half a decade.
According to the figures from Nationwide, June saw prices dip by 0.4% compared to the previous month, with the data showing that London was home to the weakest regional performance in the last three months.
During the second quarter of the year, the majority of regions saw the annual rate of house price growth slow, with Scotland being the only one to experience a significant uplift of 3.1%.
Northern Ireland was at the other end of the scale; after seeing strong growth of 7.9% during January to March, the second quarter saw the level drop to 2.1%. Price growth also softened in Wales, with the rate slowing from 6.1% to 4% during Q2.
The strongest pace of growth during the second quarter of 2018 was seen in the East Midlands, with prices here seeing a yearly rise of 4.4%. At 4.3%, the West Midlands was just behind.
Commenting on the figures was Nationwide’s Chief Economist, Richard Gardner. He said: “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. 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. Subdued economic activity and ongoing pressure on household budgets is likely to continue to exert a modest drag on housing market activity and house price growth this year, though borrowing costs are likely to remain low.
“Overall, we continue to expect house prices to rise by around 1% over the course of 2018.”