Property prices in the United Kingdom continued to increase in June, indicating broad stability according to reports. The latest index from Nationwide shows a seasonally adjusted 0.1 percent month-on-month, following a 0.5 percent increase in May. Only Northern Ireland saw values fall in the second quarter of 2010. In contrast, the annual rate of house price inflation dropped for the second consecutive month from 9.8 percent to 8.7 percent.
Overall U.K. house prices in the second quarter increased by 1.9 percent quarter-on-quarter. This resulted in an annual growth rate of 9.5 percent, up from 8.8 percent recorded in the first quarter of 2010.
According to Nationwide’s quarterly index, the South West of the country showed the strongest regional growth, with prices up by a seasonally adjusted 3.0 percent, and up 12.5 percent annually. London had the strongest growth overall. Its prices increased 13.2 percent in the second quarter. Growth in northern and midland regions was weaker than in the southern regions.
Indicators point to an increase in the number of properties for sale while the level of demand remains stable. “This would in part help to explain the recent slowdown observed in the rate of house price inflation,” said Martin Gahbauer, Nationwide’s Chief Economist.