Forexpros – U.K. house prices fell unexpectedly in June, taking the annual pace of house price growth to the lowest reading since August 2009, industry data showed on Thursday.
In a report, U.K. mortgage lender Nationwide said its house price index declined 0.6% in June, defying expectations for a modest 0.1% increase.
U.K. house prices rose by 0.2% in May, whose figure was revised down from a previously reported 0.3% gain.
Year-on-year, home prices in the U.K. fell at an annualized rate of 1.5% in June, compared to expectations for a 0.6% decline, after falling by 0.7% in the preceding month.
Commenting on the report, Nationwide’s chief economist Robert Gardner said, “The slightly weaker trend we’ve observed since March is unsurprising, given the difficult economic backdrop, with the UK economy dipping back into recession at the start of the year and few signs of a near term rebound.”
Following the release of the data, the pound was modestly higher against the U.S. dollar, with GBP/USD rising 0.22% to trade at 1.5603.
Meanwhile, the outlook for European stock markets was mildly upbeat. The EURO STOXX 50 futures pointed to a flat open, France’s CAC 40 futures rose 0.1%, London’s FTSE 100 futures added 0.2%, while Germany’s DAX futures pointed to a gain of 0.15% at the open.
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