(Bloomberg) --
U.K. house-price increases continued to slow this month as the brittle economic outlook discouraged buyers and sellers, according to Nationwide Building Society.
Prices rose 0.3% in July from a year ago, the lowest reading since January and the eighth months of gains below 1%, the mortgage lender said Wednesday. From June, values also increased 0.3%.
The housing market has been subdued as the uncertainty over how the country will depart the European Union lingers. Prime Minister Boris Johnson says he'll exit without a deal unless the bloc agrees to scrap the arrangements negotiated by his predecessor, an outcome that promises to create a nasty economic shock.
“Housing market trends will remain heavily dependent on developments in the broader economy,”said Robert Gardner, Nationwide's chief economist. “In the near term, healthy labor market conditions and low borrowing costs will provide underlying support, though uncertainty is likely to continue to exert a drag on sentiment and activity.”
Fewer people are moving than before the financial crisis, Nationwide said. Activity among home movers is less than half of what it was around 2007, while activity from first-time buyers has almost recovered to pre-crisis levels.
To contact the reporter on this story: Brian Swint in London at bswint@bloomberg.net
To contact the editors responsible for this story: Paul Gordon at pgordon6@bloomberg.net, Zoe Schneeweiss
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