U.K. Price Growth Falls Annually For the First Time in Eight Years
The average property price now stands sat £216,403
BY LIZ LUCKING | ORIGINALLY PUBLISHED ON JULY 1, 2020
The economic fallout from the coronavirus pandemic brought U.K. property price growth to a standstill in June and caused home values to drop year-over-year for the first time since 2012, according to a report Wednesday from Nationwide.
Values fell 0.1% annually across the country in June, leaving the average property price at £216,403 (US$270,000), the bank and mortgage provider said. On a monthly basis, values dipped 1.4%, equating to a fall of £2,500 compared to May.
MARKET REPORTS
U.K. Price Growth Falls Annually For the First Time in Eight Years
The average property price now stands sat £216,403
BY LIZ LUCKING | ORIGINALLY PUBLISHED ON JULY 1, 2020 | MANSION GLOBAL
U.K. property prices dipped 0.1% in June
GETTY IMAGES/MINT IMAGES RF
The economic fallout from the coronavirus pandemic brought U.K. property price growth to a standstill in June and caused home values to drop year-over-year for the first time since 2012, according to a report Wednesday from Nationwide.
Values fell 0.1% annually across the country in June, leaving the average property price at £216,403 (US$270,000), the bank and mortgage provider said. On a monthly basis, values dipped 1.4%, equating to a fall of £2,500 compared to May.
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“It is unsurprising that annual house price growth has stalled, given the magnitude of the shock to the economy as a result of the pandemic,” Nationwide's chief economist Robert Gardner, said in the report.
Though recent data has shown a slight uptick in transactions since April’s low, they're still far below last year’s levels, he said.
Demand, meanwhile, has been surging since the U.K.’s real estate industries have begun to resume operating, particularly in smaller and less expensive locales, Mansion Global previously reported. On Monday, Scotland became the latest area to reopen their property market, and England did so in mid May.
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Looking ahead, with lockdown measures set to be further eased in the coming weeks, “housing market activity is likely to edge higher in the near term, albeit remaining below pre-pandemic levels,” Mr Gardner said. “Nevertheless, the medium-term outlook for the housing market remains highly uncertain.”
“Much will depend on the performance of the wider economy, which will in turn be determined by how the pandemic and restrictions on activity evolve,” he added.