Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.

Nationwide Reports Flat House Prices and Uncertain Market Outlook

UK house prices remained flat at £277,484 in June, according to Nationwide Building Society. Despite this, annual house price growth edged up to 2.2% from 1.7% in May, but the overall housing market has softened.

Nationwide’s Chief Economist, Robert Gardner, attributed the recent market softening to uncertainty caused by developments in the Middle East, rising energy prices, and higher market interest rates. Gardner noted that consumer confidence and housing sentiment have weakened, and mortgage approvals fell noticeably in May.

Gardner also highlighted that recent changes in market expectations have helped lower the market interest rates that underpin fixed-rate mortgage pricing. He suggested that if the energy shock continues to subside, the Bank of England may not need to raise interest rates, or may do so less than previously anticipated. This could help restore household confidence and support a recovery in housing market activity in the coming quarters.

Nationwide’s regional figures showed a mixed picture across the UK. Northern Ireland recorded the strongest annual growth at 8.6%, while the Outer South East saw the weakest growth at just 0.1%.

For letting agents and inventory clerks, the current market conditions suggest a period of stability in house prices, but with ongoing uncertainty in consumer sentiment and mortgage activity. Regional variations may also impact local rental and sales markets.