UK house prices edged up in June, lender Nationwide says

British house prices showed a small gain in June from May but impact of higher borrowing costs is still weighing on property market, mortgage lender Nationwide said on Monday.

Prices rose by 0.2 per cent in monthly terms and were 1.5 per cent higher than in June last year, it said.

Britain's housing market boomed during coronavirus pandemic but it has slowed after Bank of England pushed interest rates to ir highest since 2008 last year.

Prices as measured by Nationwide are around 3 per cent lower than ir record high touched two years ago.

"While earnings growth has been much stronger than house price growth in recent years, this hasn’t been enough to offset impact of higher mortgage rates," Robert Gardner, chief economist at Nationwide, said.

Britain's opposition Labour Party, which is far ahe in opinion polls in run-up to Thursday's election, has promised to relax planning rules in hope of spurring construction which could make housing more affordable.

Prices in London rose by 1.6 per cent in April-to-June period compared with second quarter of 2023, Nationwide said.

A Reuters poll of housing market analysts published on May 29 showed property prices in Britain were expected to rise by 1.8 per cent in 2024 as higher wages me homes more affordable.