House Market Remains Flat In June

07/07/11

Emma Sword

Average house prices remained unchanged last month as new buyers kept away from the market, according to Nationwide.

The lender said there was a low number of mortgage applications and enquiries from house hunters during the month, leaving the market flat.

It meant house prices remained at £168,205, after a 0.3% increase in May.

Prices rose 0.3% on the three-monthly measures, which economists believe is a better measure of the underlying trend, boosted by a buoyant London market.

London is the only area seen to be bucking the trend for lower house prices.

And Nationwide said it expected the market to remain static for the next six months due to a low supply of new houses being put on the market and weak demand from buyers.

Robert Gardner, the Nationwide's chief economist, said: "It's hard to make a case for prices rising or falling sharply over the remainder of 2011 if the economy develops as we expect.

"Economic growth is set to gather pace in the months ahead but is likely to remain unspectacular," he said, while a "combination of low transaction volumes, still tight housing supply and flattish house prices looks set to stay for the remainder of the year".