House prices in the UK stagnated in June as global economic gloom curtailed demand, the latest survey by Hometrack showed Monday.
While prices remained unchanged compared to the previous month, the number of first time home buyers fell 0.5 percent, marking the first drop in five months. Property supply, however, increased 1.5 percent on month.
High unemployment, weak wage growth and subdued consumer confidence are also holding back demand for property in the UK.
"As we move into the summer months, the traditional seasonal slowdown will ensure that demand remains subdued," said Richard Donnell, director of research at Hometrack. "As a consequence, we expect the balance between supply and demand to widen, with house prices set to come under renewed downward pressure over the second half of the year," he added.
Price growth in London remained steady at 0.3 percent, while all other regions saw renewed price falls.
Meanwhile, results of another survey by property website Rightmove showed last month that asking prices for a property in the U.K. rose to a new record high in June buoyed by strong price movements in London and South East.
In contrast, Nationwide Building Society said last week that house prices declined at the fastest rate since 2009 in June as a double-dip recession and the end of stamp duty holiday dampened demand. According to the group, the outlook for house prices remained highly uncertain.
by RTT Staff Writer
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