UK house prices rebounded in the month of July and increased modestly. House prices grew 0.6% month on month compared with figures in June, according to data from Nationwide. House prices were forecasted at the beginning of the year to increase only 2-3% overall for the entire year. Annual average rate of house price growth has been consistent at 2-3%. House price growth is expected to remain subdued for the rest of the year.

House price growth is expected to be quite subtle for the remainder of the year based on forecasts of many housing experts.

Robert Gardner, Nationwide chief economist, commented on the slight increase in house price growth, saying: “Subdued economic activity and ongoing pressure on economic budgets is likely to continue to exert a modest drag on housing market activity and house price growth this year.”

House price growth has been at an elevated level for many years. This has led to a housing market with massive challenges gaining access to it. Young, first time buyers are especially at a disadvantage and housing figures are surfacing to back it up. House price growth over the last decade has pushed the average cost of a house in and outside the London city limits beyond a point of being affordable.

House price growth is only one element of housing market health, but it is an important one. Along with stamp duty and mortgage lending approval tests, house price growth is in direct relationship with growth of the market in general.

House prices are not expected to deviate much from their present point as the year progresses, according to many close to the market.