United Kingdom: Housing market remains limp in July
According to the Nationwide Building Society (NBS), house prices in the United Kingdom rose 0.3% in July, up from June’s 0.1% increase. On an annual basis, house prices also rose 0.3% in July, down from June’s 0.5% uptick. The average house price in July was GBP 217,663 (July 2018: GBP 217,010). The broad picture is unchanged; the property market is in a soft patch, weighed on by weak consumer sentiment and Brexit uncertainty.
The market is likely to stay sluggish in coming months in the runup to the new Brexit deadline of end-October. However, assuming a no-deal Brexit is avoided, house price growth should pick up somewhat, supported by favorable demographics and a strong labor market.