Date issued: 28 Jun 2007

RAIN FAILS TO STOP PLAY IN JUNE’S HOUSING MARKET

• House price growth bounced back in June, increasing by 1.1% during the month
• Prices increasing more than twice as fast as last year, at the equivalent of £50 a day
• Rate of growth will slow in second half of year; we stick with our forecast of 5-8% growth in 2007
• Gordon Brown’s increased focus on housing is welcome, but the implications of any changes to buy-to-let taxation need to be carefully thought out

Headlines	June 2007	May 2007
Monthly index * Q1 '93 = 100	363.5	359.7
Monthly change*	1.1%	0.5%
Annual change	11.1%	10.3%
Average price	£184,070	£181,584

* seasonally adjusted

Commenting on the figures Fionnuala Earley, Nationwide's Chief Economist, said:

“While June’s heavy rain dampened the first days of Wimbledon, it did little to check the vigour of the housing market as house price inflation bounced back during the month. House prices increased by a stronger than expected 1.1% in June - the fastest monthly increase in 2007. The pick up during the month brings the annual rate of house price inflation to 11.1%, its highest level since January 2005 and more than twice as fast as the pace of growth at this time last year. The price of a typical house is now £184,070, more than £18,000 higher than this time last year, which is the equivalent of a rise of more than £50 per day."

For further information please see this month's full report (PDF - 48KB)