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UK House Price Growth Remains Subdued in August, Nationwide Reports

UK house prices increased by 1.6% in the year to August, a slight rise from July, according to Nationwide. The market continues to be affected by weak growth and higher mortgage costs.

  • UK house prices rose by 1.6% in the year to August, up from 1.4% in July.
  • Month-on-month, prices increased by 0.2% after seasonal adjustments.
  • The average house price in August was £275,465, a decrease from £276,581 in July.

UK house price growth remained subdued in August, with Nationwide reporting a 1.6% increase in prices over the year. This marks a slight rise from the 1.4% annual growth recorded in July.

On a monthly basis, house prices saw a 0.2% increase after seasonal adjustments, following a 0.1% fall in July. The average house price for August stood at £275,465, down from £276,581 the previous month.

Nationwide's chief economist, Robert Gardner, noted that market activity and house prices have been subdued due to an uncertain economic backdrop. He highlighted ongoing geopolitical tensions, which are pushing up energy prices and market interest rates.

Property sector figures have reacted to the data, with Nathan Emerson of Propertymark seeing stability, while Tomer Aboody of MT Finance suggested the market continues to soften. Jason Tebb of OnTheMarket observed that focused buyers were price-sensitive, indicating a subdued but resilient market.

What this means for you: Landlords considering a property purchase or sale may find the market restricted by weak house price growth and higher mortgage costs.

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