Ashley Webb, senior UK economist at Capital Economics, took a similar view. “The stagnation in the Nationwide measure of house prices in June shows that the rise in mortgage rates triggered by the Iran war continues to weigh on the housing market,” he said.
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Webb is looking for house price growth of 1.5 per cent this year, although he conceded that the housing market recovery may take a little longer than he had initially forecast. “Either way, the coming falls in mortgage rates make us more confident in our view that big outright falls in nominal house prices are not on the cards,” he said.