UK house price growth falls to five-year low of 2 percent - Nationwide

LONDON (Reuters) - British house prices rose at their slowest annual rate in five years this month and look set to remain subdued due to modest economic growth and squeezed household budgets, mortgage lender Nationwide said on Wednesday.

Sold new build homes are seen on a development in south London June 3, 2014. REUTERS/Andrew Winning

House prices across the United Kingdom were on average 2.0 percent higher this month than a year ago, slowing from a growth rate of 2.4 percent in May. This was the weakest in five years though a smaller slowdown than the drop to 1.7 percent forecast in a Reuters poll.

In June alone, prices rose 0.5 percent versus a forecast rise of 0.3 percent, but Nationwide said there was only a trickle of new properties coming on to the market and inquiries by potential new buyers were subdued.

Reporting by David Milliken; Editing by Andrew Heavens

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