UK annual house price growth cools in July amid "uncertain" backdrop
(Alliance News) - UK house price growth slowed in July, data from Nationwide showed on Friday, as geopolitical tensions have meant the market has "remained soft".
According to the mortgage lender's latest index, house prices rose 1.8% on-year in July, easing from 2.2% in June.
On-month, prices edged up 0.1% in July. They had been flat in June from May.
"Market activity and house prices have remained soft in recent months, in part reflecting the uncertain economic backdrop. Geopolitical tensions remain high, with the conflict between Iran and the US again exerting upward pressure on energy prices and market interest rates in recent weeks. Financial market expectations for the future path of bank rate have been volatile, reflecting shifting views about the inflationary implications of events at home and abroad," Nationwide analyst Robert Gardner commented.
"Despite the ongoing risks from the latest energy price shock, the Monetary Policy Committee can take some comfort from the fact that consumer price inflation declined further in June. Signs that wage growth has continued to ease gives policymakers more breathing space to assess the extent to which tighter policy is necessary to ensure inflation returns to target."
The Monetary Policy Committee is the Bank of England's nine-member rate-setting team. The BoE's Monetary Policy Committee voted 6-3 to leave bank rate at 3.75% on Thursday. The central bank has maintained rates in each of its five meetings this year, with the last change a quarter point cut to 3.75% in December.
Ahead of the decision, numbers last week showed UK consumer prices rose by 2.6% in the 12 months to June, easing from 2.8% in May and below the FXStreet-cited forecast of 2.7%.
By Eric Cunha, Alliance News news editor
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