UK house prices growth slowed down in June, Bloomberg reports. According to Nationwide Building Society evaluation, growth pace this month is the lowest in five years.

Market demand is restricted by weak economic activity and reduction in household budgets. No changes shall be expected on the market in nearest time, analytics think.

Price growth in June was 2% compared to last year. In May it was at level of 2,4%. It is expected that the growth will slow down further, and final number for this year will be just 1%.

Further development of situation will depend on economic conditions, labor market and on Bank of England’s policy in regards to interest rates. In May Bank decided to postpone interest rate hike, but signaled that it will take measures to tighten its monetary policy later this year. Bank of England increased interest rate by 0,5% for first time in decade in November last year.