Annual house price inflation fell to 3.3% in June from 4.6% the month before, it said. Just a year ago, prices were rising by 11.8%.
However, house prices in Wales and Scotland have actually fallen over the last year, according to Nationwide.
Between May and June prices across the UK fell by 0.2%, taking the average cost of UK property to £195,055.
Robert Gardner, Nationwide’s chief economist, said: “House price growth continues to outpace earnings, but the gap is closing, helped by a pick-up in annual wage growth, which moved up to 2.7% in the three months to April from 1.9% at the start of the year.
“The slowdown in house price growth is not confined to, nor does it appear to be driven primarily by, developments in London.”
Although some economists were surprised by this, they still maintain their original views.
While we are slightly surprised by June’s dip in house prices, it does not fundamentally change our view that house prices are likely to be firmer over the second half of the year
He still expects house prices to rise by 6% this year, and 5% next year.
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