UK house prices have defied expectations by increasing slightly in June 2023 but annual prices fell at the fastest rate since 2009 as soaring mortgage costs took a toll on the market, according to Nationwide Building Society.
The surprise monthly rise of 0.1% reversed a 0.1% fall in May 2023 and surprised economic forecasts of a 0.3% fall! It pushed the average cost of a house in the UK up slightly to £262,239. House prices were 3.5% lower in June 2023 compared with a year earlier, the sharpest rate of decline since 2009.
The sharp increase in borrowing costs is likely to exert a significant drag on near-term housing market activity
It is important to note that the housing market is subject to fluctuations and can be influenced by various factors such as economic conditions, government policies, inflation, interest rate increases and global events.