UK house prices rose slightly in June, but experts warn of 'calm before the storm'

UK house prices rose slightly in June, but experts warn of 'calm before the storm'

House prices across the country saw a surprising slight increase in June, despite the fact fears over the referendum outcome meant there was a drop in activity, but experts have warned that the price rise was a result of a calm before the storm, with Brexit still likely to affect the property market moving forward. 

According to the latest report from Nationwide Building Society, the average property price across the UK as a whole hit some £204,968 as of the end of June, which marked a rather surprising 0.2 per cent rise when compared to the end of May. 

This rise also represented an increase of 5.1 per cent in the price of property when compared to the end of June last year, a rise in the annual property price growth from the 4.7 per cent yearly increase recorded in May. 

However, Nationwide has warned that the market's stability at the end of June could yet be put to the test, because the Brexit vote implications have yet to hit home, and there could be a real fall in demand moving forward, which could see house prices fall at some point in late 2016.

Robert Gardner, Nationwide's chief economist, said: "It will be difficult to assess how much of the likely fall back in transactions in the quarters ahead is because buyers brought forward purchases to avoid additional Stamp Duty liabilities, and how much is due to increased economic uncertainty following the referendum result."

"Ultimately conditions in the housing market will be determined by conditions in the wider economy, especially the labour market. It is too early to assess the impact of the referendum vote on the economy," he added. 

The good news for homeowners is that Brexit should not have too much of a negative effect on the price of their property. Although small falls in value are expected, the fact that there is also forecast to be a drop in supply levels should mean that prices are able to be relatively well sustained, hopefully until the market regains its confidence in the post-Brexit world.