UK house price growth accelerates to 1.6% in August, Nationwide says
British house prices rose 1.6% year on year in August as affordability improved despite economic uncertainty and higher energy and market interest rates.
London, United Kingdom. British house prices rose 1.6% in August from a year earlier, accelerating from a 1.4% increase in July, according to mortgage lender Nationwide Building Society.
The annual increase was below the 2.0% rise forecast in a Reuters poll of economists. Prices increased 0.2% month on month, compared with a 0.1% gain expected in the poll.
Economic uncertainty
Nationwide chief economist Robert Gardner said market activity and house prices had remained subdued in recent months, partly due to an uncertain economic backdrop.
He said geopolitical tensions remained high, with the conflict in the Middle East putting upward pressure on energy prices and market interest rates. However, Gardner said housing affordability was improving.
Market conditions
Rightmove data published last month showed the largest August decline in asking prices for newly listed homes since 2018, despite a modest increase in activity after Prime Minister Andy Burnham took office.
Ashley Webb, senior UK economist at Capital Economics, said uncertainty over potential tax rises in finance minister John Healey’s upcoming budget could further restrain house price growth in the coming months.
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