A postman delivers letters to a bright pink painted residential house in Chelsea, west London, U.K. (Photographer: Chris J. Ratcliffe/Bloomberg  )

U.K. House Prices ‘Broadly Flat’ Amid Shortage of Properties

(Bloomberg) -- U.K. home prices increased slightly last month as a shortage of properties kept the market tight.

Prices were 0.3 percent higher than in May, mortgage lender Halifax said in a report Friday. On an annual basis, the growth rate slowed to 1.8 percent in the three months to June from from 1.9 percent in the period to May.

British house price growth has been weakening for years after a three-decade boom. Brexit has also dented the market, but rock-bottom interest rates, record-low unemployment and a shortage of properties for sale are preventing a steep crash.

“House prices continue to remain broadly flat,” said Russell Galley at Halifax. “Activity levels, like house-price growth, have softened compared with the final months of last year.”

Still, “the continuing shortage of properties for sale” should “continue to support price growth,” Galley said.

The average U.K. home price is now 225,654 pounds ($300,000).

©2018 Bloomberg L.P.