The house price growth in the UK remained stable in July 2017 witness a modest increase of 2.9 per cent annually, according to latest data released by Nationwide.

On a month-on-month basis, the house prices increased by 0.3 change, the Nationwide House Price Index for July revealed. “The annual pace of house price growth remained broadly stable in July at 2.9%, only a touch lower than the 3.1% recorded in June. On the surface, this appears at odds with recent signs of cooling in the housing market,” Robert Gardner, Nationwide's Chief Economist said.

The annual house price growth is hovering in the 3 per cent to 6 per cent range, as witnessed in the last two years. Survey data point to relatively sluggish levels of new buyer enquiries, but at the same time surveyors report that relatively few properties are coming onto the market. Besides, the number of homes on estate agents’ books is already close to 30-year lows, the Index said.

Constrained supply of homes is likely to continue to provide support for house prices and, as a result, Nationwide expect prices to rise by 2 per cent over 2017 as a whole - only modestly lower than the levels recorded in recent months.