House price growth slows further in July: Nationwide

Annual house price growth has now remained below 1% for the eighth month in a row.

The figures show that house prices saw a modest 0.3% month-on-month rise, after taking account of seasonal factors.

Robert Gardner, Nationwide's Chief Economist, said: “Annual house price growth remained below 1% for the eighth month in a row in July, at 0.3%. While house price growth has remained fairly stable, there have been mixed signals from the property market in recent months.

“Surveyors report that new buyer enquiries have increased a little, though key consumer confidence indicators remain subdued. Data on the number of property transactions points to a slowdown in activity, though the number of mortgages approved for house purchase has remained broadly stable.

“Housing market trends will remain heavily dependent on developments in the broader economy. In the near term, healthy labour market conditions and low borrowing costs will provide underlying support, though uncertainty is likely to continue to exert a drag on sentiment and activity.

Jeremy Leaf, former RICS residential chairman, commented: "These confirm what we are finding on the ground - that the market is very much in limbo on the one hand underpinned by near record low mortgage rates and improving affordability but on the other, not moving ahead as we might have expected. One of the reasons for the lack of activity is clearly political uncertainty but there is no doubt that talk of changes to stamp duty is also weighing on perspective sellers’ minds.

"Fortunately, first-time buyers are slowly returning, taking advantage of buy-to-let landlord caution following various tax and regulation changes. Looking forward, we don’t expect the situation to change too radically until there is more clarity on the political front, although there is no doubt some buyers are looking beyond Brexit and making the most of more realistic pricing."