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Nationwide: House Prices Increase in July, Brexit Impact Still Unclear

The mortgage lender’s latest house price index shows property price growth in July, but the impact of Brexit remains unclear.

Brexit Impact Unclear But House Prices Rise in July

The mortgage lender’s latest house price index shows property price growth in July, but the impact of Brexit remains unclear.

According to Nationwide, property prices rose by 0.5% over the course of July, rising from an average of £204,968 to £205,715 – a new record high average.


The rate of growth builds on the 0.2% recorded in June and is a 5.2% increase on the average seen in July 2015, rising marginally on the 5.1% year-on-year growth seen last month.


However, whilst the market is continuing to grow, chief economist for Nationwide, Robert Gardner, was keen to stress that finding a trend in these latest figures is difficult.


‘Housing market transactions were always likely to soften over the summer after the surge in activity in March, as buyers brought forward purchases of second homes to avoid the stamp duty levy, which took effect in April.


‘Determining how much of any fall-back in activity is the result of the tax changes and how much is due to the referendum will be difficult.’


In the index, Mr Gardner indicated that the wider impact of Brexit on the housing market will most likely be determined by external factors, such as stock levels remaining at their lowest level for thirty years and the construction of new homes remaining behind the level of demand.

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