The UK property market posted the biggest monthly rise since 2009 with average house prices jumped unexpectedly by £4,500 in July. Nationwide said prices rose 1.7 per cent last month compared to June taking the average sale price of a UK home to £220,936. However, the UK's biggest mortgage lender warned that July's increase could prove to be a “false dawn” driven primarily by pent-up demand.
The world's largest building society warned the house price recovery may be built on shaky foundations. Nationwide's chief economist Robert Gardner said, “The bounce-back in prices reflects the unexpectedly rapid recovery in housing market activity since the easing of lockdown restrictions.” He added, “There is a risk this proves to be something of a false dawn. Most forecasters expect labour market conditions to weaken significantly in the quarters ahead as a result of the after-effects of the pandemic and as government support schemes wind down. If this comes to pass, it would likely dampen housing activity once again in the quarters ahead.”
