UK house prices saw a 0.1% increase during July, with the annual growth rate slowing to 1.8% from 2.2% in June, Nationwide has reported. The average cost of a home now stands at £277,542, a slight rise from £277,484 the previous month.
Robert Gardner, Nationwide's chief economist, noted that prices remained largely flat month-on-month after seasonal adjustments. He attributed the soft market activity and house prices in recent months partly to an uncertain economic backdrop, including high geopolitical tensions and upward pressure on energy prices and market interest rates due to the conflict between Iran and the US.
Tom Bill, head of UK residential research at Knight Frank, identified higher mortgage costs and uncertainty surrounding property taxes as factors limiting buyer demand this summer. Nathan Emerson, Propertymark's chief executive, added that constrained housing supply, fluctuating borrowing costs, and varying buyer demand continue to influence market conditions, with national figures masking significant regional differences.
Jeremy Leaf, a north London estate agent, observed that buyers maintain the upper hand, leading some sellers to reduce asking prices to secure transactions. Ian Futcher, a financial planner at Quilter, highlighted that affordability remains a significant challenge, particularly as mortgage rates have recently increased amid renewed tensions in the Middle East, causing many prospective buyers to delay their decisions.