UK house prices increased in August for the first time in four months, with the average price of a British home rising by 0.2% month-on-month to £275,465, Nationwide reported. This follows a period of decline since April.
The increase comes as buyers and sellers are reportedly in a "holding pattern" ahead of an anticipated interest rate decision by the Bank of England's monetary policy committee on 17 September. The base rate of interest currently stands at 3.75%.
Despite the monthly rise, the average UK property remains valued more than £3,000 less than the £278,880 estimated in April. Annually, house prices were up 1.6% in August compared to the same month last year, which is an increase from July's 1.4% year-on-year rise but below economists' forecast of a 2% annual increase.
Robert Gardner, Nationwide's chief economist, noted that the latest energy price cap increase has not yet impacted buying and selling activity. He suggested that underlying affordability is improving as house price growth is below earnings growth, although higher mortgage rates have offset some gains.