Annual house price growth edges up in July

The annual pace of house price growth edged up to 3.5% in July from 3.3% in June. UK house prices increased by 0.4%.

Robert Gardner, Nationwide’s Chief Economist, commented “After moderating over the past twelve months, there are tentative signs that annual house price growth may be stabilising close to the pace of earnings growth, which has historically been around 4%. This would bode well for a sustainable increase in housing market activity, though whether this will be maintained will depend on whether building activity can keep pace with increasing demand.

“The outlook on the demand side remains encouraging. Employment growth has remained relatively robust in recent quarters, and, after a prolonged period of subdued growth, wage growth is also edging up. With consumer confidence buoyant and mortgage rates still close to all-time lows, demand for housing is likely to firm up in the quarters ahead."

House Price Index Headlines Jul 2015 Jun 2015
Monthly Index* 385.9 384.5
Monthly Change* 0.4% -0.2%
Annual Change 3.5% 3.3%
Average Price (not seasonally adjusted) £195,621 £195,055

*Seasonally adjusted figure (note that monthly % changes are revised when seasonal adjustment factors are re-estimated)

Read the full report here