LONDON: British house prices fell in June with the annual pace of decline reaching its highest rate for almost three years as the economy remained weak with little sign of a bounce back, mortgage lender Nationwide said yesterday.
House prices fell 0.6 per cent after a rise of 0.2pc in May - 1.5pc lower than a year ago, the lowest reading for annual growth since August 2009.
"The slightly weaker trend we've observed since March is unsurprising, given the difficult economic backdrop, with the economy dipping back into recession at the start of the year and few signs of a near-term rebound," said Nationwide chief economist Robert Gardner.
He said the outlook for house prices remained uncertain, with economic conditions likely to stay challenging.
But he said policymakers' efforts to boost credit to the economy and lower its cost should support demand.