LONDON, June 30 Reuters British house prices fell by the most since 2009 in the 12 months to June, mortgage lender Nationwide said on Friday, although monthly data showed a small unexpected rise.

Compared with June last year, the average house price was down 3.5 after a 3.4 annual fall in May, Nationwide said. Prices rose by 0.1 in June from May.

Analysts polled by Reuters had expected prices to fall by 0.3 in monthonmonth terms and by an annual 4.0.

Britain39;s housing market is slowing as the Bank of England raises interest rates sharply in an attempt to curb the highest inflation rate among the world39;s big rich economies.

Earlier this year, the market showed signs of stabilisation after the turmoil of late 2022 when former Prime Minister Liz Truss39;s minibudget plans for tax cuts roiled financial markets.

But a run of strongerthanexpected inflation figures has pushed up bond yields and mortgage interest rates, most recently after the BoE raised its base rate by half a percentage point last week.

Much of the impact of higher borrowing costs on mortgageholders has yet to hit the housing market.

Industry body UK Finance estimates 800,000 fixedrate mortgages will need to be refinanced in the second half of this year, and a further 1.6 million in 2024, out of a total of around 9 million residential mortgages.

Reporting by William James; editing by Sarah Young and David Milliken

Source Reuters