UK house prices rebound in July - Nationwide

(Sharecast News) - UK house prices bounced back in July, according to figures released on Friday by Nationwide. House prices rose 0.6% on the month following a 0.9% decline June. On the year, prices increased 2.4% in July following 2.1% growth the month before.

The average price of a home stood at £272,664 last month, up from £271,619 in June.

Nationwide's chief economist Robert Gardner said: "Looking through the volatility generated by the end of the stamp duty holiday, activity appears to be holding up well. Indeed, 64,200 mortgages for house purchase were approved in June, broadly in line with the pre-pandemic average, despite the changed interest rate environment.

"After deteriorating markedly in the wake of the pandemic, housing affordability has been steadily improving, thanks to a period of strong income growth alongside more subdued house price growth and a modest fallback in mortgage rates."

Gardner said that despite wider economic uncertainties in the global economy, underlying conditions for potential home buyers in the UK remain supportive.

"Unemployment remains low, earnings are still rising at a healthy pace (even after accounting for inflation), household balance sheets are strong and borrowing costs are likely to moderate a little further if Bank Rate is lowered further in the coming quarters as we, and most other analysts, expect," he said.

"Providing the broader economic recovery is maintained, housing market activity is likely to continue to strengthen gradually in the quarters ahead."