27.06.201802:17:00UTC+00UK House Price Growth Slows In June

UK house prices increased at a slower pace in June, data from Nationwide Building Society showed Wednesday.

House prices grew 2 percent year-on-year in June, following May's 2.4 percent increase. Nonetheless, the pace of increase was faster than the expected 1.7 percent.

On a monthly basis, house prices rebounded 0.5 percent after falling 0.2 percent in May. Economists had forecast a 0.2 percent rise.

"Looking further ahead, much will depend on how broader economic conditions evolve, especially in the labor market, but also with respect to interest rates," Robert Gardner, Nationwide's chief economist, said.

"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."

The economist forecast house prices to rise by around 1 percent over the course of 2018.

Data showed that house prices climbed 2.2 percent on a yearly basis in the second quarter. London was the weakest performing region in the second quarter, with prices down 1.9 percent year-on-year.