Property prices climb by more than 1%, in spite of political uncertainty

Property prices climb by more than 1%, in spite of political uncertainty [Photo: Rawpixel Ltd via iStock]

Property prices in the UK are often dictated by the current political climate, with elections and the uncertainty they bring to the future of the sector often leaving buyers feeling like they should wait before making their move. Throw Brexit into the mix, and this summer seems like a perfect storm for falling house prices and a stalling market. 

However, according to new reports, this has not been the case. In fact, property prices actually climbed, even if only slightly, in June. Following three months of falling prices, Nationwide has reported a rather positive start to the summer, with a 1.1 per cent monthly increase across the country, which wipes out the previous declines experienced.

The average home now costs a little over £211,000, according to the lender, which means that over the course of the last 12 months, they have climbed by some 3.1 per cent in price. 

Data from Nationwide also shows that the gap between the best and worst performing areas in the UK, in terms of house price, is the smallest it has been for some time. This suggests widespread health across the entire sector, even at a time when we would usually expect to see stalling figures.

Robert Gardner, Nationwide’s chief economist, said moderate price growth in the south and better growth in the north meant the gap between the lowest and highest increases was just one per cent compared to five per cent. 

"At this point, it is unclear whether the increase in house price growth in June reflects strengthening demand conditions on the back of healthy gains in employment and continued low mortgage rates, or whether the lack of homes on the market is the more important factor," he said. 

He said moving forward, Brexit could still have an impact on house spending, which may slow down price rises in the next few months, but it is unlikely to be a long-term trend that affects the market.